Rachel Reeves has announced crucial government funding to help unlock key Liverpool city centre regeneration projects which could create thousands of jobs
Chancellor Rachel Reeves has announced significant funding for several major projects which she says will help propel Liverpool city centre to ‘the next level’, with Metro Mayor Steve Rotheram committing to unlock schemes across the city that could generate over 2,500 jobs.
Addressing delegates at the UK Real Estate Investment and Infrastructure Forum (UKREiiF) in Leeds on Wednesday, the Chancellor promised substantial funding for flagship projects in Liverpool city centre, which she and the mayor believe will deliver a considerable boost to the local economy.
The government investment will feed into the Liverpool City Region Combined Authority’s £2bn investment fund, which is being deployed to unlock vital developments throughout the city.
Our sister publication the Liverpool Echo has confirmed that the schemes include the Pall Mall Gardens development and the transformation of the iconic Grade II* listed Martins Bank Building, both situated in the city’s Central Business District.
Here we examine these projects in closer detail and what they could deliver, alongside other city schemes receiving government backing at UKREiiF.
Pall Mall Gardens
In Lees, Ms Reeves pledged to help bring forward a project that would represent “the first new-build Grade A office, the top tier of commercial office spaces in the country, in Liverpool’s Central Business District for more than 15 years,” in reference to the Pall Mall Gardens development on land off Bixteth Street. The debate over this site has been going on for some time. The council-owned site, which formerly housed a city centre green space, was controversially cordoned off in 2020 when initial proposals were unveiled for new development comprising three blocks of Grade A office accommodation, a hotel and landscaped gardens.
Site remediation work was carried out before the scheme ground to a halt, and the area has remained unused ever since. Last year fresh funding was obtained, raising renewed optimism that phase one of the £60m development could be completed by 2028, delivering the city’s first Grade A office accommodation in 15 years.
Keir Property Developments Ltd continues as the designated developer on the scheme, which has the potential to deliver a total of 400,000 sq ft of office accommodation, alongside retail and leisure facilities and 6,000 sq m of landscaped public realm.
In March this year, Kier confirmed that the Pall Mall Gardens scheme had achieved an important milestone, specifically the completion of the updated RIBA Stage 3 design, representing substantial progress in the opening phase of the development.
According to the Liverpool City Region investment guide, Liverpool City Council and Kier Property are “progressing detailed design and contractor procurement of the first three buildings”, with construction able to commence in mid/late 2026.
It adds: “The team are also keen to secure occupiers for this nationally significant development that will transform Liverpool’s CBD.”
Martins Bank Building
In her speech in Leeds, Ms Reeves also unveiled backing for significant heritage regeneration within the Central Business District, delivering an additional 140,000 sq ft of Grade A workspace through the restoration of long-vacant heritage assets.
The ECHO understands this will include funding to help advance the redevelopment of one of the business district’s most architecturally impressive properties, the Grade II* listed Martins Bank Building on Water Street.
Constructed to designs by architect Herbert J. Rowse between 1927 and 1932 as the headquarters for Martins Bank, the building remains an eye-catching seven-storey structure.
Proposals to restore and breathe new life into the building received approval from Liverpool City Council in December 2022. Those proposals, which at the time involved majority-owners Karrev, a London-based property investor, and developer Kinrise, centred on transforming the impressive structure to accommodate 140,000 sq ft of offices, a restaurant and social space situated within the former banking hall.
Images of the proposals depicted the central hall as a “culturally engaging, multifaceted space”, incorporating a café and restaurant alongside meeting, co-working and event facilities. The intention was for the transformation to be finished by 2024, but that deadline has passed.
In 2024 it emerged that Kinrise are no longer part of the project and that the scheme would be pushed back until at least 2026. The aspiration will be that government and Combined Authority funding will accelerate this timeline.
Hemisphere One
Alongside the announcements regarding new office space and the restoration of historic buildings, Ms Reeves and the Combined Authority have also unveiled additional funding for more advanced Liverpool schemes, where development is already progressing at pace.
This includes the cutting-edge laboratory and office project known as Hemisphere One, situated in Paddington Village within Liverpool’s rapidly expanding Knowledge Quarter.
The scheme is outlined in the city region investment prospectus as a 110,675 sq ft, purpose-built laboratory and office complex designed for leading commercial and academic pioneers to flourish. Hemisphere One will serve as a “bespoke home for cutting-edge commercial and academic laboratories” and will provide “a unique range of contemporary, high-specification office and write-up spaces to support the needs of innovation businesses of all shapes and sizes.”
The project is now set to receive backing from the city region’s investment fund and central government. It is anticipated the development will generate 500 operational roles and close to 300 positions during the construction phase.















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