Salford investment brings £2.2m reward

Salford Mayor Paul Dennett

Council chiefs say their recently announced investment in Salford Central is expected to bring £2.2m a year into the city’s coffers.

Salford City Council is planning to invest about £200m over 25 years to develop more than 252,000sq ft of top quality, new office space at 100 Greengate and Two New Bailey – moves which aim to bring in a hard cash return.

City mayor Paul Dennett has signed the Record of Decision papers, approving the investment.

He said: “Our investment will provide for 3,000 long-term jobs in Salford, construction employment and training opportunities and encourage the economic development of the entire Salford Central area, generating much needed business rates.

“As local government is being encouraged to become more and more financially self-sufficient as a result of government policy, local councils need to find innovative ways to raise funds locally which don’t just mean raising council tax.”

Cllr Bill Hinds, lead member for finance, said: “Combined, the two buildings will generate an average of £1m a year for the city. But when you add in the business rates we will attract, that’s a further £2.9m – almost £4m a year.  Once we pay back tax to the Treasury Salford City Council takes home £2.2m for our public services.

“People may ask where the money is coming from. It is capital programme funding that is used to develop business and infrastructure opportunities.  Where the market can’t provide, the council can act as a large-scale local investor to create the right conditions for growth. Salford City Council is now second only to Manchester in economic growth in Greater Manchester because of investment like this.

“Increasingly, local authorities up and down the country are looking to find new ways to get money and economic expansion into their local areas, generating growth and creating new job opportunities for residents.”

Salford has seen an extensive capital programme over the past decade with £1bn invested in projects from MediaCityUK to the AJ Bell Stadium over the past decade.

Dennett is strongly backing the need for Greater Manchester councils to undertake commercial activity, building on the success of the city region and continuing to attract business and investment into the city.

He said: “Right now is the time to start making these investments, as areas such as Greater Manchester benefit from continuing growth, our proximity to the central business district and the spill-over effects of London’s overheating economy.

“Rochdale council already owns its town centre shopping centre, Bury council owns several offices and Stockport council owns an office and a multi-storey car-park.

“Salford’s approach is enabling growth in the city’s business economy, creating long term employment opportunities and construction related employment opportunities. This is bringing in an increase in business rates and generating a positive cash flow return to the council for investment in frontline services at a time of austerity.”

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