Funding found for Longbridge housing scheme to go ahead

Jul 7 2010 by Jonathan Walker, Birmingham Post

A threatened major housing scheme to regenerate the site of MG Rover’s former plant has received a reprieve after a Government agency found £3.6 million to subsidise it.

The project to build 115 new homes on the former MG Rover site in Longbridge, near Lickey Road, can now go ahead with a grant from the Homes and Communities Agency.

It follows the cancellation of a range of major building projects in Birmingham, including the refurbishment or renovation of 13 schools and the creation of a new magistrates court in the city centre.

But the Longbridge scheme is one project that will continue despite dramatic cuts in public spending, it has been announced.

Another £6.5 million has been found to subsidise building 164 homes at Walsall town centre near the canal, at a development known as the Waterfront South development.

Paul Spooner, regional director for the Homes and Communities Agency West Midlands, said: “Today’s announcement is great news for communities across the region with many of the priority schemes for our local authorities and their development partners now going ahead. 

“As well as increasing the supply of affordable housing in the region, these schemes will be a major boost for local communities as they also secure new apprenticeships and job opportunities as well as safeguarding employment linked to the house building industry.”

Labour had promised the money under a scheme called Kickstart, which provided subsidies for developments that would usually be funded privately, in an effort to help the construction industry during the economic crisis.

But the Department for Communities and Local Government placed a number of Kickstart schemes “on hold” while they were reviewed.

The Longbridge project was part of plans to build a total of 1,450 new homes at Longbridge, along with offices, shops and a new college, backed by Birmingham City Council.