Hard times but a bright future for Tyneside

David Slater, executive director of Environment and Regeneration at Newcastle City Council, is looking at these challenging times positively. He’s taking a vigorous and proactive stance to regeneration in the city that is slowly starting to pay off. “There is absolutely no doubt that we are in some pretty severe financial circumstances just now but Newcastle still has a real, almost tangible vibrancy,” Mr Slater explains. “The city centre continues to be extremely busy and in general, there’s a very good feeling about the place. People really love living here and that shows. We continue to see development across the city – and more is in the pipeline ready for the upturn.”

This Mr Slater sees as the key for future success and the role the Council must play. By maintaining a pace of development, continuing to make things happen, the city is ready and in the right place to seize the first signs of recovery. In short, Newcastle is still very much open for business.

It’s an optimism built around solid, tangible advantages on offer in Newcastle. In recent years the city has seen a constantly evolving skyline, with towering cranes almost commonplace. The pace of change never fails to impress those who might remember a very different city of 20 years or so ago; before the cultural renaissance, the explosion in hotel provision and the growth of the professional services sector, especially around the quayside.

Part of this confidence in future success lies in the huge city centre sites currently being developed and an array of attractive investment propositions. Not only are sites in Newcastle seen as commercially attractive, but they are backed up by a solid public sector investment pattern too. This is ably demonstrated by the 8ha Science Central site assembled jointly with the University and the Regional Development Agency (RDA) on the old Newcastle Brewery plant.

Generally, consumers in the North East have a lower debt-to-income ratio that the credit-stretched South East. Newcastle’s quality retail market space is more than holding its own, and the office market is steady if not buoyant.

Part of this, Mr Slater asserts, is down to the Council having the right approach and the right attitude: “We’ve restructured our operations in the Council to make us much more responsive and business friendly,” he said.

Recognition that the private sector has the key skills to help drive forward the future of the local economy has ultimately led to the formation of 1NG, the new City Development Company formed in partnership with Gateshead Council. Private sector led and with a non-public sector majority on its board, 1NG demonstrates that the city is serious about working with the market to deliver future economic growth. An economic masterplan is being prepared so that both public and private investments can be strategic and long term.

So there are promising signs. “In general the city is coping very well,” Mr Slater said. “Yes, the commercial rental level has dropped and yes, land values have fallen but Newcastle hasn’t really seen any major problems in the retail sector for example, other than national chains. In fact, we are extending the retail core at Eldon Square and seeing good new letting levels.”

Further engagement with the developer community is achieved through regular Developer Round Table meetings. These meetings allow the council to engage with the key players in the development world, seeking their views and concerns and working in partnership to iron out as many impediments as possible to the continued physical regeneration of the city.

“These sessions have proved extremely valuable both as a sounding board for the concerns and requirements of our partners in regeneration and also as a touchstone for our own plans as a Council,” Mr Slater said. “We’ve looked at our internal process and made changes as necessary to help developers such as ways to make site assemblies easier and less red tape in the planning process. The city is working on a site-by-site basis to make sure development at all levels – not just the big schemes – still happens.” And the signs are there that it’s working. City-wide regeneration is a long term process but undoubted indications of success are evident with a record planned investment of £2bn.

Across the city key developments are moving at a vibrant pace. Science Central, on the former site of the Scottish & Newcastle Brewery, is to be the physical manifestation of Newcastle’s Science City. 1NG is working with the Science City Board which includes the RDA, Newcastle University and the City Council to deliver the project whose main aim is to provide a commercial and research centre for science linked to the city centre.

The Stephenson Quarter, due for competition in 2014, is a major heritage led redevelopment site for which detailed planning permission has been granted. There are proposals for a new 250 bed, four star hotel, 30,000 sq metres of office space, 53 bed boutique hotel, 156 residential apartments and retail space with restaurant and leisure facilities.

A stone’s throw from the Civic Centre, the Haymarket Hub revitalises the historic Northern Gateway to Newcastle city centre, led by a consortium of Nexus (the passenger transport Lead for Tyne & Wear) and Closegate Developments. The £20m redevelopment of Haymarket station, used by six million people each year, is part of the first phase of a huge project to reinvigorate the Metro system, one of the best transport infrastructures in the UK.

Work is starting on the extension to the retail and commercial heart of the city at East Pilgrim Street and inroads are being made into the gaps in work, healthcare and education in the inner areas and the city centre. The council is actively looking to invest (as its recent purchase of Northern Rock’s HQ shows) and to de-risk for the private sector. 1NG will deliver further major investment within a sound joint planning framework which the city is developing jointly with neighbouring Gateshead.

Meanwhile, resident pride and ownership is at a new high and there is more to come. As Mr Slater points out: “Newcastle is gearing up for a future that will see a growing science-based knowledge economy, underpinned by strong universities and high student staying-on rate; further inward migration to counter skills gap and ageing population; a better housing mix, both top of the range and affordable, continued growth in professional and business services, more enterprise and self-employment, continued growth of tourism and of the cultural and creative industries and strong and empowered communities and neighbourhoods,” he said.

So, while many might plan to just sit tight and ride out the current financial downturn, Newcastle City Council is very much open for business and looking towards a brighter future with some confidence – and justifiably so.

Contact Claire McDonnell, Tel: 0191 277 8996 or email: claire.mcdonnell@newcastle.gov.uk