BUDGET | Leeds in the spotlight
Chancellor Rachel Reeves is also the MP for Leeds West and Pudsey – and she certainly showed the city some love in today’s Budget, with measures that should help to cement both its growing reputation for financial services and plans for further regeneration.
The government’s latest Budget was so anxiously anticipated that mere speculation about its contents had already slowed market growth. However, today’s plan outlined a series of long-term commitments aimed at accelerating growth, regeneration, and housing delivery in Leeds. It also positioned the city as a central hub in the Northern Growth Corridor – itself headed up by former chief executive of Leeds City Council Tom Riordan – and as a focal point for national investment.
Leeds City Fund
A key announcement is the creation of the Leeds City Fund, a 25-year Business Rates Retention zone covering part of Leeds city centre. Subject to business case approval, the mechanism will allow Leeds City Council to retain 100% of the business rates growth above an agreed baseline, providing a sustained funding stream for major regeneration projects.
According to the chancellor’s Budget, this will help unlock new homes and commercial space, support upgrades to the transport network, and contribute to improvements in public realm across the city centre.
The BRR zone complements a wider programme of activity designed to boost regional productivity.
National Housing Bank HQ
Nationally, the Budget highlights the scale of ongoing investment in housing, including the £39bn Social and Affordable Homes Programme and the newly established £16bn National Housing Bank.
Although only briefly mentioned, Leeds is set to benefit directly from the latter, with the government confirming that the National Housing Bank will be headquartered in the city.
This will add to a growing cluster of financial institutions that includes the National Wealth Fund, the Bank of England, and the Financial Conduct Authority and can, surely, only strengthen Leeds’ position as a major financial centre and expand the talent base for the UK’s housing finance sector.
Housing and the South Bank new town
As well as those new announcements, the Budget also builds on prior government commitments to the city, with West Yorkshire’s Mass Transit, the development of the ‘Northern Square Mile’, and recognition of Leeds South Bank as one of the strongest candidates for a new town all getting a mention.
South Bank is one of several locations identified for a potential new town, and is clearly earmarked as one of the most promising sites.
Any final decisions will follow Strategic Environmental Assessment, with formal announcements expected in the spring. Each new town is expected to accommodate at least 10,000 homes, creating substantial opportunities for residential developers, infrastructure providers and long-term investors.
For Leeds, this overall package might just signal a multi-decade commitment to development, with newly announced funding levers, a recommitment to major housing initiatives, and a strengthened financial sector investment all aimed at catalysing growth in one of the UK’s fastest-rising regional economies.
On Northern British Devolution, Economic regeneration, business rates retention in return for higher than baseline business rates growth, and funding for the £13 Billion skills and combined single funding stream for regional Mayors is certain to increase economic output quickly and conditions to benefit us all and the country’s economic picture.
Helps fix the North British and South British divides. Builds trust via autonomy and working together to deliver real world positive Results.
By Tyke
No mention of the long delayed funding for Temple Mills.
By Eamon Egan