2. Foreword: Contents
Leeds City Foreword: Leeds City Region..................P2
Region Foreword: Sarah Day - Managing Partner
Leeds Office, DLA Piper......................... P3
The Leeds City
Region stands at
a pivotal point. Foreword: Neil Williams - Regional Director
It is emerging from a Leeds Corporate Banking Centre,
recession that
threatened the financial Santander............................................... P4
and professional
services that had fuelled
growth in the region and
City Region Interview
put swathes of - David Parkin interviews LEP Chairman
development on hold, Neil McLean .........................................P5-7
while the abolition of
Ian Briggs - Editor regional development
TheBusinessDesk.com agency Yorkshire Growing Optimism on City Region’s
Forward and move to
local enterprise partnerships has put a new emphasis Economic Future ................................P9-11
on the City Region and, more fundamentally, its business
community, to set the area’s own direction.
Building for the Future......................P13-15
‘...critical choices will have to be Round Table - Singing off the
made that will dictate how the Leeds Same Hymn Sheet ...........................P16-18
City Region fairs for years to come’
In the next few months, critical choices will have to
be made that will dictate how the Leeds City Region
fairs for years to come. What sectors can the City TheBusinessDesk.com
Region lead the world in? How can it transform the Round Foundry Media Centre,
cutting edge research of its universities into major
Foundry Street,
businesses? Where should scarce public money be
spent to have maximum impact? How can the Leeds Leeds LS11 5QP
City Region become a brand that stands out in a
crowded global marketplace for inward investment? Managing Director:
What role will physical regeneration have in the new David Parkin e: david.parkin@thebusinessdesk.com
economic landscape?
This supplement seeks to kickstart some of those Editor:
important conversations. Over the next few pages, Ian Briggs e: ian.briggs@thebusinessdesk.com
leading figures from the region offer their views on the
future of the City Region and the steps that are needed Deputy Editor:
to ensure that we build on the tremendous advances James Reed e: james.reed@thebusinessdesk.com
that have been made in the last decade.
Both DLA Piper and Santander Corporate Banking
are each playing important roles in the growth of the
regional economy, making them ideal partners for Business Development Manager:
this supplement. Aimee Willow e: aimee.willow@thebusinessdesk.com
Despite the slow pace of economic recovery, there are
genuine signs of optimism emerging for the economic t: 0113 394 4541
future of the Leeds City Region. Exciting times lie ahead. f: 0113 394 4322
Ian Briggs
Editor
In association with:
P2 TheBusinessDesk.com - Leeds City Region supplement - May 2011
3. Unified approach attract
opportunities
The last few years opportunities for the City Region to emerge as a
brought challenging national and international contender in other sectors.
times for businesses One area is the waste and renewables industry - already,
operating in Yorkshire's private sector waste companies are
Yorkshire. But where delivering cutting edge technology and services. In addition,
there are challenges, there is the potential to position the City Region as a
lie opportunities. world-class centre for green energy and low-carbon
industries, creating thousands of jobs.
The Leeds City
Region has
emerged from the
recession in a strong ‘The Leeds City Region has
position, ready to emerged from the recession in a
Sarah Day
Managing Partner, capitalise on growth strong position’
DLA Piper - Leeds Office prospects and
build on solid
commercial foundations that have been rocked,
but not broken. Technology is also a significant growth market which
generates new ideas, enterprises and challenges on a
The way we operate as a business community is evolving. constant basis. A focus here will ensure that our region
This change is being driven largely by a shift on the grasps and exploits the huge opportunities that the sector,
public-private sector axis; a deeper integration of the which includes biotech and biomedical, brings with it.
private sector into the public realm is creating a stronger
Combined with added strengths in advanced manufacturing
and more necessary partnership between the two than
and the creative industries, the Leeds City Region is one
we've seen historically.
of the UK's most diverse economies. We can provide a
Successful collaboration here is key to achieving more. world-class offering in a wide range of sectors and
Done well, both sectors will work in synergy to fulfil their specialisms and it is crucial that we set our sights on
individual needs whilst realizing the goals of the wider international markets to promote these services.
region. Thanks to its professional capabilities and the
Whilst we remain committed to the local and national
presence of the Leeds City Region Local Enterprise
markets in which we operate, DLA Piper Leeds also sees
Partnership (LEP), Leeds is perfectly placed to exploit the
opportunities from international markets and so aims to
benefits this will bring.
get closer to these. We have identified specific foreign
Made up of 11 local authorities, the Leeds City Region territories as being key to our growth aspirations and are
LEP is the largest outside London. It represents one of the working more closely with our colleagues in Europe, the
UK's largest economies - worth £52bn - and is an alliance west coast of the USA, China and Australia.
which will encourage future growth and inward investment.
Visibility in these markets will reap many benefits.
The recently announced co-ordinated approach of the
Businesses across the region should be encouraged to
three LEPs for York & North Yorkshire, Leeds and Sheffield
develop and nurture their links overseas, not only to
means that we are now in an even better position to develop
fulfil their export and manufacturing objectives, but
and compete with other national and international cities in
also to encourage inward investment from these
the commercial arena.
countries in return.
This unified approach will undoubtedly attract new
This approach will ensure the Leeds City Region achieves
opportunities to Yorkshire, helping to shrink the long the recognition it deserves as a thriving and attractive
perceived North-South divide and to promote the region place to do business. Actively encouraging innovation and
on the international stage. Improved, positive relationships growth and setting its sights on a positioning beyond its
will not only encourage business growth, but will work existing local and national capabilities is key - if successful,
hand in hand to bring an improved social provision. the region has the potential to become an international
A number of sectors and geographies have emerged as centre fit to rival major commercial hubs across the globe.
fundamental to our region's prosperity. Leeds is already
renowned for the strength of its professional and financial
services and encouraging continued growth here should Sarah Day - Managing Partner - Leeds Office,
undoubtedly remain a key focus. But there remain significant DLA Piper
In association with:
P3 TheBusinessDesk.com - Leeds City Region supplement - May 2011
4. Proud to be committed to
Leeds City Region
At Santander conditions. But for Santander Corporate Banking, it is
Corporate Banking, not all about price.
we are committed As a sustainable lender, we focus on getting to know
to supporting your business and understanding your potential. By
developing better relationships with our customers
SMEs - not just we are able to provide sustainable funding solutions
by providing the that focus on the long-term viability of a business
finance they need rather than short-term volatility.
to expand, but Unlocking other finance
also through
developing true Our Relationship Directors and product specialists are
experts in all the sources of finance available to support
partnerships business growth.
Neil Williams - working with
Regional Director - Yorkshire, them to achieve
Santander
their goals;
understanding their challenges and helping ‘We have a strong track record
them grow and be more successful. on lending and have made a firm
Our Corporate Banking Centre in the centre of Leeds commitment to provide new
is an ideal base for our teams to support businesses in
the local area and this central location is replicated in
finance for SMEs.’
Hull & Sheffield. Our Relationship Directors are experts
in helping businesses grow and will use their local
market experience to work with you to find the right This includes the government's Enterprise Finance
funding solutions for your business. Guarantee Scheme, offering finance to higher-risk
We can help you access direct investment, additional businesses, and specialist support for exporters. We’ll
sources of finance, and provide solutions to help you advise you whether you qualify, and help you to apply.
invest in equipment or pay suppliers more efficiently.
Asset finance is also available to help you invest in
Most importantly, we work with our customers as new property, plant and equipment, and invoice
business partners and aim to give them the long-term, finance, which lets you unlock cash flow from invoices.
hands-on local support they need to develop their There are many ways to manage both - we’ll help find
business to its full potential. the right ones for you.
New lending: a £4bn pledge Reaching your full potential
Firstly, we can help businesses access finance. We There is no doubt that Santander Corporate Banking
have a strong track record on lending and have made remains committed to the SME market. We pride
a firm commitment to provide new finance for SMEs. ourselves on building long term relationships with
In 2010, while overall bank lending fell by 20%, our businesses in the region which can only be done by
lending to SMEs rose by 26%. This year, we have taking the time to truly understand how your business
committed, as part of the government’s ‘Project Merlin’, works, its aims and objectives.
to increase lending to SMEs by another 25% and first If your business could benefit from this personal
quarter results show we are ahead of target. approach to corporate banking, we’d be delighted to
We’re the only bank that has revealed firm targets for speak to you.
lending in 2011 and have pledged £6.7bn in new finance,
with £4bn of this directed to SMEs.
We want to maintain competitive terms for our funding, Neil Williams - Regional Director - Yorkshire
in a responsible manner, without unreasonable Leeds Corporate Banking Centre, Santander
In association with:
P4 TheBusinessDesk.com - Leeds City Region supplement - May 2011
5. Chairman offers
LEP vision
Focus can help City
Region punch above
it’s weight
Neil McLean is a man on a
mission. David Parkin
speaks to the Leeds City
Region LEP chairman.
IT is early days in the life of the
Leeds City Region Local Enterprise
Partnership (LEP) but its chairman
Neil McLean says he is greatly
enthused by his new role.
There is no room for negativity
from McLean, a no-nonsense
property lawyer by background,
who recently stepped down as
the long-serving Leeds office head
of DLA Piper, one of the world’s
largest law firms.
LEP chairman Neil McLean
‘People say that the
“If you can start by creating a real suggest he will have to use his
LEP will sort environment for growth and bring casting vote anytime soon.
everything out - well it investment into the region then
even on a small scale you are When it is pointed out that 17
won’t. We need to be making a difference. people makes a big board of
a facilitator to help directors, he smiles and points
“We have to be sensible here. out that he currently chairs a
people work together...’ People say that the LEP will sort larger one. “Leeds City College
everything out - well it won’t. We was 20 members on the board
need to be a facilitator to help and it is now 22.”
Not even a seemingly unwieldy people work together and to make
board finely balanced with eight it easy to do business.
public sector and eight private ‘...there is a real
sector representatives can dampen “We can’t do it for people, we
his enthusiasm for a role that gives can support and help and direct hunger to get on and
but whether it works or not
him a crucial position driving the
depends on how the private sector
make progress...’
economic recovery across the City
Region, a huge area stretching views the opportunities for business
from Barnsley in the south to rural in the region.
“I was very pleased with the first
North Yorkshire. “How easy it is to come here to do board meeting. The attitude of
McLean has now chaired two board business, to find a skilled everybody, there is a real hunger
meetings of Leeds City Region LEP. workforce? Are we a supportive to get on and make progress
While he says he is paid a “nominal” business community? And that is and identify our investment and
sum as non-executive chairman, what have to convince people of.” growth strategy.
he has effectively been doing
The board is made up of eight public
the job on an executive basis He is acutely aware that the LEP
sector members, eight private sector
since he took the role. can help provide the focus to
members “and me” says McLean,
I point out that his enthusiasm is who adds that the accord at the help the City Region punch above
clearly visible. first board meeting does not its weight.
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P5 TheBusinessDesk.com - Leeds City Region supplement - May 2011
6. “The City Region has an economy “We don’t want to make it too
worth £52bn and is larger than that complicated but you get some form ‘We want to get people
of nine European countries. People of structure.”
are surprised at that.” in developing quality
Big decisions are needed early
on from the LEP, the key one
and generating
‘...there are two things being the location of an business rates and we
enterprise zone, the Government
that need identifying initiative introduced in the Budget
can use it to pump
first: what local in March. prime development’
authorities can deliver “The enterprise zone is of benefit
to the region because the new The Manchester LEP decided last
and what the private business rates that are generated month that it was to site its
sector can deliver’ can be kept and recirculated within enterprise zone at Manchester
the region. Airport.
He says there are two things that “We want to get people in “If you look at the Manchester
need identifying first: what local developing quality and generating area they have a successful
authorities can deliver and what the business rates and we can use it international airport and it is pretty
private sector can deliver. to pump prime development. obvious. In Nottingham, with the
Boots campus, pharma is a growing
“We will have delivery arms through McLean admits that choosing the part of the economy.
the public and private sector. location of the EZ as a “difficult job”.
“For us it’s a bit difficult, it’s a diverse
economy, we don’t have one key
business area that gives you that
Tackling the scale of the obvious lead.
Leeds City Region “Sheffield has steel - but we don’t
have one readily identifiable
business area.
THE breadth and scale of “If you put it in the wrong place
the Leeds City Region, and it fails then you are “It makes decision-making more
benefiting nobody. difficult,” says McLean, but he has
presents both challenges
already done plenty of work to
and opportunities, “The far reaches of the City Region identify the key sectors that the City
according to Neil McLean. will also work with other regions. Region should look to focus on to
People should not feel that they provide it with national and
On the positive side he says: are on the geographical international investment
“Ninety five percent of the working opportunities.
outreaches.
population live and work in the
region. If you can generate growth
in the region the wider benefit will
‘Sheffield has steel
‘..everybody can benefit
be to the whole region. - but we don’t have
within the City Region
“It’s very much trying to convince
one readily identifiable
wherever the pockets
people that everybody business area’
of real growth are’
can benefit within the City Region
wherever the pockets of real
“Everybody is making a lot of noise
growth are. “We will work with other LEPs. about the enterprise zone but they
I have met the chairs of the are part of a much bigger jigsaw.
“You have to accept that
LEPs in Yorkshire and I hope to We need to look at other areas
investment should go to where
where there are maybe ERDF
the best return can be because meet the chair of Manchester
support and the TIFs.”
the best return will service the because there are areas we will
whole of the region. work together on.” Tax increment financing (TIF) is a
public financing method which is
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P6 TheBusinessDesk.com - Leeds City Region supplement - May 2011
7. used as a subsidy for “Let’s be realistic, some of the
redevelopment and community stuff we are talking about is 10, 15,
improvement projects and McLean, 20 years ahead.” What lies
highly experienced in property
and development projects, He says “two to three years would ahead for
believes they should be a key area
of focus for the LEP.
seem sensible” for his tenure.
the LEP
NEIL McLean is
He describes the recent ‘One of the issues realistic when he
announcement of the first
successful bids for the Regional we are talking about surveys the challenges
Growth Fund as “confused and ahead for the LEP. He
is a change of says the City Region
confusing”.
mindset. We have to has been “going along
“There did seem to be a bit of a get people thinking nicely” for years but
random selection, both in Yorkshire must up its game.
and beyond. in different ways’ “It won’t be easy. Leeds has
in some ways talked about its
“We had hoped that the first round position for years and years
decisions and more importantly the McLean says that the early days but has performed
explanation of them would be out of the LEP are crucial, to get it economically below that.
before the round two process “set up well with clear objectives
opened. But there has been very and clear deliverables”.
little feedback.” ‘Other cities have
When asked what he would like to
McLean says that Government made it easier to
achieve in his time as chairman, he
involvement is “improving”. says: “Not in specific terms, in do business’
“There is a more concerted
simplistic terms what you have got
approach from Government, they
to see is the area working closely
clearly want to make it work and “Leeds has done well legally
together to deliver economic growth and financially but relied too
have to make it work.
and employment growth. much on that and not focused
on other sectors enough.
“We have had a far too fragmented
“We have had trams,
‘...what you have got economy and far too fragmented
economic districts [haven’t
approach in the past.” happened]. Real economic
to see is the area progress - can you remember
working closely He feels the relatively new team a lot? Not really.
at the top of Leeds City Council,
together to deliver “We have been going
leader, Labour councillor Keith
along nicely but we have been
economic growth and Wakefield and chief executive telling ourselves that we are
Tom Riordan, is a benefit. a great international city. We
employment growth’ have to be harshly realistic.
“I think it’s a help they are both open
“The job is to get public
to change. One of the issues we and private sectors working
“There is a cross department are talking about is a change of together.”
group to talk to to get speedy mindset. We have to get people
Part of it has been
decisions. They have said they want thinking in different ways.
complacency and I don’t think
to listen to business and put flesh we have had the dynamic civic
“We have got to have some leadership with clear aims
on the bones.”
radical ideas. I think Tom going into and ambitions that have
He says he has not put a time limit the authority, he knows the region, convinced the private sector.
on his involvement with the LEP. is well connected, Keith is Other cities have made it
supportive of change. easier to do business, that has
“My agreement is that we will review put people off.
it after a year. We didn’t know “And neither do I have any “I don’t really think we have
whether this would work out and concerns about any of the other been hungry for business,”
whether I was right for the councils leaders,” he adds quickly, showing he adds starkly.
and they are right for me. his skill for diplomacy.
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P7 TheBusinessDesk.com - Leeds City Region supplement - May 2011
9. Growing optimism on City
Region’s economic future - by James Reed
BEFORE the global
economic landscape
changed three years ago,
the Leeds City Region
was flying high.
Development was widespread,
Leeds itself had successfully
positioned itself as one of the
leading financial centres outside
of London, and the local
economy was thriving and given
an additional boost by a
prolonged dose of significant public
sector spending.
Bridgewater Place has helped boost the image of the Leeds City Region
The credit crunch threatened to
turn all that upside down. Iconic
“But the “We talk about the rebalancing away
projects such as the “kissing
doom and from financial services but if you
towers” went on hold, suddenly
gloom of look closely at what is said by
out of tune with the rising mood of
January Government, they are not talking
austerity, and grim predictions
2009, after about downsizing financial services,
surfaced that this would be a the autumn they are talking about greater
recession that targeted the white and winter of growth in other areas.
collar industries. discontent,
Howard Kew
Chief Executive, didn’t come to
A new Government dramatically Financial Leeds pass. Over ‘...we outperformed
cutting public spending and the course of
committed to ‘rebalancing’ the the financial crisis and immediate
the rest of the UK
economy away from financial aftermath we outperformed the rest and particularly
services posed a further threat. of the UK and particularly
outperformed London.”
outperformed London’
The reality of the last three years,
however, has not been anywhere That gap in performance was the
near as grim as the doom difference between losing 17,000 “For all the emphasis on
merchants suggested, according to jobs in the regional economy. engineering, manufacturing, low
According to Kew, the diversity of carbon - all of which are
Howard Kew, chief executive of
the financial and professional important - the biggest engine for
Financial Leeds.
services and a creative approach growth remains financial and
taken by firms - cutting hours professional services.”
“During the healthy phase of the
rather than jobs and seeking new
economy in the first eight years of That optimism is echoed by
markets - helped the City Region’s
the century we saw compound resilience. Sarah Day, new managing partner
growth in the sector of around 6 or at DLA Piper’s Leeds office.
7% over that period. Then we hit But with a Government intent on
the buffers and I think there was a reducing the economy’s reliance on “What we have seen over the last
lot of concern that having achieved financial services, doesn’t that pose 18 months is a lot of corporate
above average growth that that a real problem for an area that has activity. In the last five or six
could get reversed very quickly. put itself in that space? months we have seen an upturn
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P9 TheBusinessDesk.com - Leeds City Region supplement - May 2011
10. in people
going to the
debt
markets
again.
“There’s still a
Sarah Day nervousness
Managing Partner, around. Our
DLA Piper
litigation and
restructuring teams are very busy
but there is much more optimism,
albeit cautious.”
Looking ahead, Day says the Leeds: an example for others of future growth in the UK
firm is expecting to see growth in
sectors such as waste business in the region as the public know the new local enterprise
management and energy as well sector withdraws from direct partnership will be looking at is the
as financial services. provision of services. “Where public-private axis and we think
there are challenges there are Leeds is very well placed to make
She also forecasts opportunities for opportunities and one of things we the most of that.”
Historic company looks ‘...we expect to see
to the future growth in sectors
such as waste
For more than 150 years, and upgrading gears in existing
management and
David Brown Gear wind turbines, the company has
Systems has been also started developing its own energy as well as
products in the field targeting the
adapting its gear expertise growing offshore market.
financial services’
to the demands of new
technology.
‘Turbines are typically While the creation of local
And as the green energy
revolution begins to pick up pace enterprise partnerships has put a
justified on the
it is doing so again with a new new emphasis on local
focus on wind turbines. basis that they will economies, Day is keen to see
“If you had to characterise what last for 20 years...’ the City Region continue to project
the core of our gear making it is itself as part of a much broader
that we specialise in supplying area, particularly in the inward
It has also worked with the Leeds
customers who need an absolute investment context.
City Region Local Enterprise
assurance against failure. They
need to know that once we have Partnership and Kirklees Council
installed our gearing it is not to successfully bid for £2m of “If you are looking at inward
coming out again,” says Ian Government funding to help investment Leeds is tiny on a
Farquhar, managing director for establish a new research and global scale but as soon as you
wind energy. innovation centre that will help expand that you have got a very
demonstrate the company’s attractive proposition. When you
“Turbines are typically justified on
expertise to potential clients and
the basis that they will last for 20 are trying to compete with China
years and yet their gear boxes foster collaborations with
academics from the University of they are not going to be looking
typically need repairing after six at 1.1m people but they are going
to 10 years. But we know that our Huddersfield.
gear boxes for other applications to be interested in a wider area
“We see this as a new growing
might last for 40 to 50 years.” that has great manufacturing,
market where we can set new
professional services, energy,
Initially focusing on overhauling standards,” says Farquhar.
expertise and so on.”
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P10 TheBusinessDesk.com - Leeds City Region supplement - May 2011
11. Nicola Spence sees that ability to
work across the City Region and
beyond in The economic outlook
order to
appeal to the - an SME perspective
wider world as
critical to the Companies in the Leeds City Region
success of the are working harder each year to
local generate the same level of business.
economy. But it’s tough out there.
Nicola Spence
Chief Executive,
Science City, York As chief The economy is unlikely to bounce back to pre
executive of 2008 levels in the near future so businesses
Science City York she is well-placed need to react accordingly.
to identify the sectors where the Jonathan Hirst A major impact for business owners is that,
Leeds City Region could lead in the Partner, ITogether
more than ever, they scrutinise all spend,
UK and even the world. She points
particularly that which doesn’t directly generate revenue. That puts
to healthcare, digital technology and
particular pressure on areas like IT.
bioscience as just some of the
areas where the City Region boasts The challenge for companies like ours is to turn these threats into
cutting edge expertise. opportunities. In our case we’ve reshaped the firm to enable businesses
to harness the benefits of technology without drawing their
attention away from the front line and rebranded from Network
Integration to ITogether to better
‘We need more inward explain how we work.
investment, to attract
It is the regional firms that can ‘...we’ve reshaped
businesses that others demonstrate that ability to
can cluster around’ change quickly to meet new the firm to enable
expectations that will continue businesses to
to thrive even in the challenging
times ahead. harness the benefits
But she argues, important
building blocks need to be put in Jonathan Hirst, partner, of technology...’
place if the area is to achieve its ITogether.
potential.
“We need more inward investment, For Spence, these issues are
to attract some major businesses crystalised in the debate about
‘...what are the roads
that others can cluster around. the location of the enterprise
We have to work much harder at and the other forms of zone earmarked for the City
showing business it is easy to come transport we need to Region.
and work with us, it is easy to
access the knowledge we have. make it easy to do “We need to decide how we are
We need to make it as easy as business across the going to make the most of this
possible to have the conversations exciting opportunity - not, as
that produce ideas that turn into
City Region?’ perhaps we might have done in
businesses or collaboration. the past, looking at somewhere
that’s really not doing very well
“We have got eight universities in “We also need to ask what are and needs something . Let’s
the Leeds City Region and three the pieces of infrastructure focus our efforts where we can
of the top 10 in the UK so we have missing, what are the roads and put an enterprise zone that can
to ask why we are not doing as well the other forms of transport we need really accelerate the economy
on inward investment as other to make it easy to do business and attract businesses, start-ups
parts of the country? across the City Region?” and spinouts.”
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P11 TheBusinessDesk.com - Leeds City Region supplement - May 2011
13. Building for the
future
Property development and
Physical regeneration can
drive the recovery - by Ian Briggs
construction may have
been hit hard by the
economic downturn but the
role of physical
regeneration to drive the
economy cannot be
underestimated.
Take a look today around the Leeds
City Region’s towns and cities and
for many observers the perspectives
may appear bleak.
At many sites work has stopped, or
in some cases never started, as the Bradford’s key regeneration project, the six-acre City Park
effects of public sector spending
cuts, bank financing restrictions and gallery and centre for creative arts, comes from physical work going
a loss of confidence in the sector The Hepworth Wakefield, as well on,” says Jennings. “It’s quite
are all too visible. as new space for cafes, bars easy to say what you’re going to
and restaurants. do in terms of ambitions, but it’s
different to do it.
Also in the West Yorkshire city,
‘Cranes can once the £140m Merchant Gate “But when you see something
development’s second phase is being constructed it gives reality
again be spotted on the underway. to these visions and people do then
believe it. The consequence of
horizon and scaffolding Developer Hammerson recently
this is that when people see
announced the submission of
is a familiar sight...’ someone else getting on with it
new plans for its major 1m sq ft
they think ‘perhaps we ought to
Eastgate Quarters retail scheme,
start doing it’.”
and construction work is on
But despite national headlines schedule at the 13,500 capacity
painting a bleak picture of Leeds Arena.
development, there are signs in this ‘...other schemes are
Across the
region that things are picking up. now coming out of the
city, a major
Cranes can once again be spotted sign that
on the horizon and scaffolding is a confidence is ground as a direct
familiar sight at many sites which returning to result of Trinity Leeds’
have sat idle since the peak of the the market is
property boom came to a showcased
shuddering halt in 2008. at Land
Jennings believes other schemes
Gerald Jennings Securities’
Work has commenced on one of Portfolio Director - North, are now coming out of the ground
Trinity Leeds
Bradford’s key regeneration
Land Securities as a direct result of Trinity Leeds.
development,
projects, the six-acre City Park, where work is on schedule for “You’re creating a virtuous circle
giving the city a boost as Australian completion in spring 2013. and the circle gets bigger. It really
developer Westfield’s proposed does come down to people seeing
Broadway development in the city Gerald Jennings, Land Securities’ physical work come on.”
centre continues to falter. portfolio director for the North, says
the morale-boosting effect of Guy Barlow, head of the Leeds
In Wakefield, the £100m Waterfront physical regeneration cannot be office of architects The Manser
Wakefield project features a mix underestimated. Practice, also believes that physical
of high-quality offices and regeneration can act as a catalyst
residential buildings and a £26m “There’s a certain confidence that to help drive economic recovery,
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P13 TheBusinessDesk.com - Leeds City Region supplement - May 2011
14. but only when it is “approached in City Region is
the right way”. well placed. Pin factory
“It is not a panacea, but it can
generate employment in
Ripley has tower points
acted for a ahead
construction in the short term, then
number of
create jobs in the longer term and
investment Tower Works is a
help stimulate growth,” he argues.
funds which
have
property steeped in the
Tim Field, who leads DLA Piper’s Nikolaj Dockree
acquired past but its role today is
Leeds property team, sounds a note Ripley Capital
property in very much looking to
of caution: “It’s very fragile out there; the region and Dockree believes the future.
there’s no getting away from that. deals will continue because of the
However, we are seeing some uplift Work has commenced to create
amount of “high quality kit” available 18,000 sq ft of commercial
and signs of activity. We’ve been and the good value they represent.
doing some interesting work and space at the historic former
banks are looking at doing “The Leeds City Region has offered pin factory, dating from 1864,
transactions. rental growth prospects and good in Leeds.
opportunities for money coming into The current phase of work at
“However, those doing deals have the region as well as secure income Tower Works involves the
got to be certain that every streams,” he says. stabilisation of one of the three
conceivable angle has been listed chimneys and restoration
covered. That fragility is there but
a lot of people are trying to work ‘The Leeds City
through these issues to get these
deals done.” Region has offered
Field said active sectors looking for
rental growth
property are healthcare, energy prospects and good
from waste plants and transport and
added that he is seeing an upturn opportunities...’
in activity for new developments
and also SMEs moving into existing Tower Works: future development
premises as business improves. “This all does position the Leeds restoration project for Leeds
City Region very well going forward.
Nikolaj Dockree, of Ripley Capital, From an occupational point of view and conversion of two listed
a Yorkshire-based business which the region is in a good position to buildings with new build
works with investors and partners cope. Private sector investment will elements, which will provide
on the acquisition and ongoing continue to drive the region.” serviced office accommodation
asset management of commercial and community space.
property and development sites, Funding for key infrastructure The redevelopment will create
says that despite some “inertia” in projects, such as a southern office accommodation to
the investment market, the Leeds entrance to Leeds railway station, complement the Round
Foundry Media Centre at
Holbeck Urban Village.
The future of the mixed-use
Tower Works scheme had
been cast into doubt because
of cuts to public sector
spending and as a Yorkshire
Forward asset the regional
development agency has
stated it would like the site to
be transferred to council control
- a move refused by Ministers.
However, despite ongoing
worries about its future
ownership, development work
at the historic complex is
welcome and is a confident sign
that the Leeds City Region is
investing in projects that will
drive economic growth.
Trinity Walk - Wakefield
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P14 TheBusinessDesk.com - Leeds City Region supplement - May 2011
15. have been given the green light and regeneration projects to get started. “There’s huge benefits of these
commentators believe schemes towns and cities approaching it in
such as this, and transport However, the timetable for the a more collegiate way and they do
improvements, can drive physical Government’s planned introduction have to appreciate that Leeds is
regeneration and vice-versa. of TIF legislation, which is already the predominant commercial
available in Scotland, remains location in the City Region.”
Jennings believes a number of uncertain and question marks
conditions have to be in place to remain about how it will work.
create successful developments.
Martin Farrington, director of city ‘...superfast broadband
He says: “There’s been a school development at Leeds City Council,
of thought that providing a building says: “A new funding mechanism and business rate
is the be all and end all. We’ve like TIF is important. The private discounts are located
built buildings and thought it’s sector is still risk averse and the
been a regenerative force for good banking sector still hasn’t fully in the Leeds City
but some high profile structures recovered. The public sector doesn’t
have remained empty. have the funds it once could Region...’
generate to make things happen.
“The location has to be right; the
infrastructure has to be right; there “A mechanism like TIF is an Pearey, who has called for a
has to be a supportive planning example of where cash could be ‘Greater Leeds’ brand to be created,
regime and a demand for the project brought forward to invest in the adds: “Collaboration is a really big
being produced. The key infrastructure challenge.” discussion point because there’s a
fundamentals need to still exist.” strong view that we would do better
Jeff Pearey, as a region if there was an
head of the acceptance that Leeds is the
Leeds office heartbeat and everything else within
‘Collaboration is the of property the City Region will grow and
watchword for many agent Jones flourish as a consequence of
Lang LaSalle, Leeds’s improving economy.”
members of the who believes
emphasis will Alex Munro,
region’s property be put on
Jeff Pearey the head of
community’ Head of Leeds Office, new property commercial
Jones Lang LaSalle development agency
because of a development
Asked which factors would help recent “stasis” in the market, adds: at Knight
the property sector recover and “I think TIF could help to a degree Frank in
drive regeneration in the Leeds but I think traditional finance Leeds, said:
City Region, Field said there methods will come back. And we’re “There has
Alex Munroe
would need to be a combination on the eve of them coming back. It Head of Commercial been strong
coming together. only needs one or two funds coming Agency Development, leadership
back in for it to get going.” Knight Frank
from officers
These include banks increasing within the local authorities and the
lending, the return of consumer Collaboration is the watchword for leaders and we need them to be
confidence, the slowdown of many members of the region’s bold and lead from the front.”
companies facing restructuring or property community, who want to
collapse, a number of National see towns and cities work more
Asset Management Agency The Government’s decision for
closely together to boost the City
properties coming onto the market an enterprise zone, offering
Region’s property prospects.
following the collapse of the Irish relaxed planning rules, superfast
property sector, the creation of an Jennings points across the broadband access and business
enterprise zone in the City Region, Pennines to Manchester where a rate discounts, to be located in
and the use of Tax Increment the Leeds City Region gives the
number of towns have been happy
Financing (TIF). potential for a major boost to the
to align themselves together to
create a powerful brand for potential property sector.
How regeneration schemes are to
be financed is currently a hot topic property investors.
and TIF - through which the Farrington suggests that the
Government will lend to councils “There is perhaps a bit more of a Leeds City Region enterprise zone
against the promise of increased parochial manner in the Leeds City could generate more benefits if it is
revenue from future business Region and independence can be sector specific, potentially focusing
rates - is being seen as a vital positive but it doesn’t help the on green sustainable or health
way for property and collective,” he says. medical markets.
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P15 TheBusinessDesk.com - Leeds City Region supplement - May 2011
16. Singing off the same
Collective voice and achievable
hymn sheet aims needed for City Region’s
success - by Ian Briggs
Attendees:
David Parkin
- Managing Director,
TheBusinessDesk.com
Neil Williams
- Regional Director for
Yorkshire, Santander
Corporate Banking
Nick Machugh
- Relationship Director,
Round Table: Wednesday 18th May 2011
Santander Corporate Banking
THE Leeds City Region within the City Region to work
Sarah Day must establish a “script”
more closely together, as, it was
- Leeds office Managing that can be backed by
Partner, DLA Piper business and set realistic
targets if it wants to be
‘There is lots of
Neil McLean seen as a leading dynamism but I think
- Chairman of the Leeds City economic player across the image from the south
Region Local Enterprise the globe.
Partnership That was the key message to
is anything but that’
emerge from a Round Table
Nikolaj Dockree discussion of leading advisers,
financiers and business people argued, is the case with Manchester
- Director of property asset who debated the future of the and its neighbouring towns.
manager Ripley Capital Leeds City Region. The event Neil McLean, chairman of the
was held at the Leeds offices of Leeds City Region Local Enterprise
Jeff Pearey law firm DLA Piper. Partnership, described the City
Region as a “very entrepreneurial
- Director and Head of Leeds With the abolition of regional area”, with a strong business
office, Jones Lang LaSalle development agency Yorkshire start-up agenda.
Forward and the creation of a local
However, McLean said more
enterprise partnership in the City needed to be done to promote the
David McNicholas Region, panellists called on the City Region’s brand and image, both
- Financial Director, AFI-Uplift business community to set the in the UK and overseas, to help
area’s own direction. attract inward investment, and he
Roger Marsh How to make the best of the City called for more focus to be given to
Region’s world leading attributes, identifying the “key priorities” to
- Senior Partner, PwC achieve this.
such as the cutting edge reserach
Leeds office coming out of its universities, was “There is lots of dynamism but I
discussed, as were sectors including think the image from the south is
Gerald Jennings manufacturing and professional and anything but that,” he said. “But what
financial services. do people want to know that will
- Portfolio Director, attract them here? Could we attract
Land Securities, Leeds There was also a collective call a Microsoft, Apple or Sun
for the different local authorities Microsystems?
In association with:
P16 TheBusinessDesk.com - Leeds City Region supplement - May 2011
17. “Everyone is on the same page
about what we need to do. The LEP
is the co-ordinator to bring things
together. We’ve got a real
opportunity. Be it the public or
private sector side everyone wants
to pull in the right direction.
“Customers at present are saying
what’s needed of me, can I
contribute and what are the
benefits of the LEP? It’s in
everyone’s interests to get the
City Region going.”
TheBusinessDesk.com’s David Parkin ‘...a key role for the
“We need something to hang the spent a lot of money doing it.” board of the LEP is
message on. The potential is huge.
We need to package it and we David McNicholas, financial to work closely with
need to sell it.” director at Wakefield-based lift
and safety equipment business the private sector’
There was agreement around the AFI-Uplift, agreed but said more
table that clear targets had to be needed to be done to engage with
set for the Leeds City Region to be small businesses.
successful. McLean, who described the Leeds
“I agree there needs to be a script. City Region as a “world stage
Roger Marsh, senior partner in the We need to be clear on it and sell economy”, added that a key role for
Leeds office of PwC, argued that it. For many SMEs this is going to the board of the LEP was to work
under Yorkshire Forward, the be a massive engagement job and closely with the private sector.
regional development agency that if you have the script for these small
has been scrapped, too many goals businesses it’s what they’re after. If “The key job (for the LEP) is to
were set that weren’t achievable. you can’t explain it in 30 seconds start pulling all these themes
you’re in trouble. together, selling it and promoting it
He said: “We ought to be saying the better - upskilling it more. We also
economy in the Leeds City Region “We’re a £36m turnover business need to get the private sector back
is going to go from £52bn to £65bn and it’s about how the LEP will to investing.”
or whatever. engage with us. For example we’re
struggling to recruit young people.” McLean said he had been
impressed by the “dynamism” of the
Neil Williams, Yorkshire regional private sector in the North West and
‘If you can set realistic director for Santander Corporate asked if there was the same buy-in
objectives and a Banking called for “output targets” in the Leeds City Region.
and “priority sectors” to be set in the
small number you can City Region. “The private sector has been asking
what is the LEP going to do for us?
achieve them’ “Let’s take an aggressive agenda And that’s the wrong question. The
to government and tell them about LEPs have been set up in a blaze
the toolset we need,” Williams said. of publicity but with no structure.
“Manchester has a hymn sheet and
is singing from it. We need to do the
same to bring together the powers
of this region. If you can set realistic
objectives and a small number you
can achieve them. The Leeds City
Region has 143 initiatives and that
is not very prioritised.
“For example we could say let’s put
LCR on the BRIC map. That’s pretty
powerful and better than saying let’s
build something in Heckmondwike.
“We should be saying to people
in London come up and see the
LCR. And when they do, let’s have
the script we have been talking
about. The RDAs tried to do
everything but did nothing and Sarah Day - DLA Piper Leeds office Managing Partner
In association with:
P17 TheBusinessDesk.com - Leeds City Region supplement - May 2011
18. And there’s a level of
misunderstanding (about the LEP).
“The right question should be
‘what can we do together to
revitalise the economy?’. It’s
absolutely a partnership.”
Marsh said the LEP could
become “a lubricant” to help the
City Region achieve its goals when
they are drawn up.
“On a national level we need to see
that Britain is open for business and
then what needs to happen is for
this region to come out and say
these are the kinds of business we Gerald Jennings - Portfolio Director, Land Securities, Leeds (left), Nikola Dockree
want to attract here,” he said. - Director of property asset manager Ripley Capital (right)
“If you look at Yorkshire there location as an office. I can very much which are both set to open in 2013.
are some unique facets; let’s see see us working together as a region
them as a core from which to and I think we can only benefit.” He said: “It’s about harnessing that
achieve things.” willingness of having a partnership
She cited the opportunities that wind and then delivering it because talk
energy will provide across the City is cheap. We have a mind-set that
‘I can very much see Region and called on the media to says ‘why not’ rather than ‘why’.”
be positive about its prospects.
us working together Jeff Pearey, head of the Leeds office
Nikolaj Dockree, of Yorkshire-based of commercial property agent Jones
as a region and I think property asset manager Ripley Lang LaSalle, said he had helped
Capital, said the LCR was a “poor to produce a ‘top 10 facts’
we can only benefit’ cousin” to other areas in terms of promotional pack about the Leeds
infrastructure and said this was a office market and a similar
vital area for improvement. He also approach would be welcomed for
Sarah Day, who has taken over from said corporation tax rates were the City Region.
McLean as the new managing putting busineses off from locating
partner in the Leeds office of DLA to the region.
Piper in Leeds, said that instead of
competing with Manchester, the He said: “Infrastructure needs to ‘it’s so important to
Leeds City Region should take be driven by the LEP as Leeds
advantage of its benefits and Day hasn’t achieved in this field get the key focus
called on businesses to make more previously. Someone really needs started and the right
use of its infrastructure benefits, to drive this forward.”
such as its airport.
Gerald Jennings, Land Securities’
messages for the LCR’
“We’re a bit behind the game in portfolio director who heads the
terms of this region thinking as a company’s Leeds office, suggested
region,” she said. “At DLA Piper, the City Region should harness the Pearey said although the office
local business is important to us delivery of the Trinity Leeds market in the City Region was
and it’s important we have a local shopping centre and Leeds Arena, largely flat, there had been an
increase in demand from recruitment
and training providers, which he
said was a positive sign for the
regional economy.
“I’m delighted about the
conversation around the table
because it’s so important to get
the key focus started and the
right messages for the LCR.
Let’s keep developing that script
as it’s so essential.”
McLean added: “If you can show
things are being delivered then
people will stay enthused. This is a
20 year project or so at least and
Neil Williams - Regional Director for Yorkshire, Santander Corporate Banking explains could potentially have no end.”
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P18 TheBusinessDesk.com - Leeds City Region supplement - May 2011