Manchester United’s plans to build a new 100,000-seat stadium have been hit by a further delay with no Government money for the Old Trafford regeneration project to be forthcoming in this month’s Budget.
Chancellor Rachel Reeves expressed support for the proposed £4.2billion regeneration of the Old Trafford area, with a new stadium for United at its heart last January, but it is understood that the Treasury will not be providing any funding for the project at a Budget that appears certain to be dominated by tax rises.
The i Paper has been told that United’s bid for Government funding has not progressed since the start of the year.
While Treasury officials have had talks with the Greater Manchester Combined Authority about their ambitions for regeneration and house building in Manchester, there has been no formal engagement with United or Trafford Council, the local authority where a new ground would be located.
The Government have already committed £600m in funding for Greater Manchester for the 2025-26 financial year via an Integrated Settlements for Greater Manchester and West Midlands Combined Authorities announced 12 months ago, which will champion growth and drive local investment, and additional financial backing specifically for the Old Trafford project is not on the agenda at present.
The Treasury declined to comment, but sources emphasised that the Chancellor’s priority at the Budget will be striking a balance between ensuring the Government has sufficient tax revenue to fund public services and delivering growth and investment to businesses.
United have made it clear that they are not seeking public money to build the stadium, the cost of which has been estimated at between £2bn and £3bn, but Government funding will be required to complete the wider regeneration.
The club are understood to be resigned to the delay in lobbying the Government and are focusing on unlocking potential funding at a regional level through the Old Trafford Regeneration Mayoral Development Corporation.
Last month Greater Manchester Mayor Andy Burnham designated an area of land for redevelopment, which includes Old Trafford, and the corporation is due to be established next year with Lord Sebastian Coe already appointed as chair designate.
United’s timetable for building a stadium Sir Jim Ratcliffe has billed as the “Wembley of the North” is already slipping, however.
When unveiling designs produced by Foster + Partners in March, Ratcliffe set a target of completing what he described as a five-year build by 2030.
In another cause of delay, United have also been unable to buy the rail freight terminal close to Old Trafford, which is required to begin building work.
United have offered around £50m for the land, but the haulage company that owns and operates the terminal, Freightliner, are demanding £400m, with negotiations at an impasse.
Your next read
United have shown other signs of scaling back their ambitions for the stadium in recent months by commissioning other designs, including one without the tented roof which was presented in the initial plans as its centrepiece, an omission that would save around £300m.
United have estimated the cost of the project to be around £4.2bn, although significant delays are likely to see the price increase further judging by other similar projects.
While they would be the primary beneficiaries, the club say regenerating Old Trafford would bring huge social and economic benefits to the local community and wider region, including 92,000 jobs, more than 17,000 new homes, as well as attracting an extra 1.8m visitors in a £7.3bn annual boost to the UK economy.
from Football - The i Paper https://ift.tt/IJBQoOl
Post a Comment