Developer runs the rule over economic benefits of nine malls
Developer Hammerson has hailed the long-term regeneration impact of shopping centres, after running the rule over the economic benefits of nine of its 12 UK malls.
In a report published today, compiled with property agent Jones Lang LaSalle, the developer said the centres were contributing in four key areas – economic value, benefits to local and central government, economic benefits to the wider community and perceived change in quality of life.
Benefits cited included the creation of over 30,000 jobs – almost 90% of which went to local workers – and benefits to the taxpayer totalling over £215m.
Hammerson shopping centres include Birmingham’s Bull Ring, Southampton’s West Quay and London’s Brent Cross.
The developer is planning four major retail developments in Leeds, Brent Cross, Croydon and Southampton, but pulled out of a scheme in Sheffield this summer.
Hammerson said it was “crucial” to integrate schemes into existing high streets, to improve public realm and promote the wider area to realise the full regenerative benefit of shopping centres.
Some of the benefits cited include :
- 30,940 current jobs
- £421m total wages generated
- 87% local employees
Benefits to local and central government
- £50.8m in income tax
- £40.5m in national insurance contributions
- £96.4m in business rates
- £27.7m reduction in unemployment benefit claim (based on those who were previously claiming benefits)
- £615,000 through improved health and wellbeing
- £6m due to reduced offending
Economic benefits to wider community
- £279m additional spending at Hammerson centre locations
- Surveys of local businesses outside shopping centres reported total revenue growth of 8% since centre openings
Perceived change in quality of life
- 60% crime reduction at West Quay
- Rise in National Retail Rankings. Birmingham rose from 12th to 3rd after the Bullring development, while Southampton rose from 27th to 19th after West Quay