Go-ahead for Glasgow city centre regeneration

Written on 25/10/2012 12:55:13

Scottish Government News

Deputy First Minister Nicola Sturgeon has given final approval to plans to unlock hundreds of millions of pounds of private investment to regenerate Glasgow city centre.
Glasgow City Council’s £80m Tax Incremental Financing (TIF) scheme for the Buchanan Quarter is expected to lever in £310 million in private investment and create almost 1,500 jobs.
Under TIF, councils fund infrastructure by borrowing against future business rate income that should be generated by the resulting regeneration and development.
Plans include improvements to George Square and Upper Dundas Street that will be completed before the Commonwealth Games in 2014.
The Royal Concert Hall and Buchanan Street will be upgraded, the Cathedral Street bridge strengthened and access to Queen Street station improved.
Glasgow City Council will also implement measures to maximise benefits for other areas in the city not directly included in the Buchanan Quarter TIF project.

Ms Sturgeon said:

“Big building projects like Buchanan Quarter are not just about the improved infrastructure we gain at the end, they are about the employment and the training that takes place during construction.
“This development will continue the regeneration of the city centre, improving the public spaces and creating modern, vibrant new facilities that will cement Glasgow’s position as a major international destination for visitors.

“The Scottish Government will use every lever at our disposal, within our devolved powers, to boost capital spending and through innovative financing schemes such as TIF, help the Scottish economy.”

Bailie Liz Cameron, Executive Member for Jobs and the Economy at Glasgow City Council, said:

“The Buchanan Quarter project will continue the regeneration of Glasgow and help the city centre retain its position as the biggest shopping destination in the UK outside of London.

“The delivery of the project will bring a massive economic and jobs boost and make our city centre even more attractive to shoppers and visitors.

“Buchanan Quarter is a huge vote of confidence for Glasgow, underlining the faith investors are showing in the city. Another example of this confidence is the fact that all of the retail units in the new 185-221 Buchanan Street development are pre-let, ahead of its opening next year.”

Peter Reekie, director of finance at the Scottish Futures Trust, said:

“The approval of the Buchanan Quarter project demonstrates what TIF is all about – delivering significant investment in infrastructure alongside private development commitment; creating economic activity and jobs in what remain difficult times.

“SFT has led the development of the TIF pilot programme across Scotland to deliver exactly these outcomes.

“We have worked closely with Glasgow City Council on finalising this agreement since recommending approval of its TIF Business Case and look forward to the positive impact that it can make to the whole Glasgow city centre and adjacent neighbourhoods.”

The Scottish Futures Trust, set up by the Scottish Government to deliver value for money across public sector infrastructure, has spearheaded the development of the TIF model for use in Scotland.

Visit Scottish Government website:

Return to the news here