MIPIM 2012: Invention needed to overcome infrastructure challenges

UK CITIES need to be more inventive and innovative in the way they generate funding for key infrastructure deals.

That was the message from key regional players who took part in a panel discussion focusing on investing in infrastructure to achieve growth.

Held at property expo MIPIM, panellists included Neil McLean, chairman of the Leeds City Region Local Enterprise Partnership, Sir Howard Bernstein, chief executive of Manchester City Council, and Mike Whitby, leader of Birmingham City Council.

Mr Whitby was critical of the process to access central government resources to fund major infrastructure projects such as the regeneration of New Street railway station in Birmingham. Mr Whitby described the process as “tortuous”.

He said the Council was developing new ways to allow development projects to take place, including releasing public sector land and partnering with private sector companies to acelerate housing schemes.

Mr McLean said it was essential that infrastructure schemes happened so that the Leeds City Region could grow its economy.

Sir Howard said that although different cities were striving to win investment, there were positives in collaboratively working together.

He said there was also an onus on local authorities to generate new investment models to provide mezzanine finance to help bring schemes to life.

“What we have to be doing is developing our own investment models where the public resources we can get can support equity and debt alongside the private sector,” he said.

However, Mr McLean argued that central government was, in his view, more open listening to local authorities looking for funding.

“The quid pro quo is that local authorities have to be more creative to make decisions and positively invest,” he added.