I never tire of looking at these before-and-after photos of Salford—a comeback story of urban regeneration, and a genuine example of the power of Inclusive Capitalism.
In this second instalment of a 5-article series with Forbes, Legal & General’s CEO Nigel Wilson delves into the impact inclusive capitalism can have on our cities. The piece begins with Nigel reflecting on Legal & General’s $4 billion investment in Salford and Greater Manchester and the industry of digital hub full of high-skilled, high-paying jobs that this has generated.
He talks about taking the Salford model and using this in 15 cities across the UK investing $640 million and $5 billion in revitalizing locations such as Glasgow, Edinburgh and Newcastle. The knock-on benefit to each location has resulted in jobs, housing, retail and related economic activity. He describes inclusive capitalism, investing for high return financially and socially, as not only transforming Salford but the other 15 cities also.
It’s not just cities that can reap the benefits of inclusive capitalism but also the housing market.
Nigel Wilson adds, “Housing is another such example of the potential to create return while providing a social benefit, and where the government needs private industry to fill in the gap. In 1981, there were 5.5 million publicly subsidized homes for rent in the U.K. At that time, the government spent just over a billion pounds ($1.28 billion) on housing benefits. In fact, Margaret Thatcher had promised that this housing benefit would never become more than a billion pounds. Rolling forward to 2020, there are less than 4 million houses now in the sector, and we spend approximately $32 billion on housing benefits. In the mid-1960s, we built over 200,000 public sector houses. In the mid-1970s, it was about 150,000 per year. Now the level is down to 5,000. As a result, there is a waiting list of over one million people looking for housing.”
“We’re building affordable homes, and want those businesses in the building sector—including cutting edge, eco-friendly, modular housing companies—to scale up many, many more and better affordable homes. Better later life living homes, better-built rentals, better care homes, better science and technology facilities. And many of these will be operating at net-zero carbon.”
Read the full Forbes article HERE.