Thousands of jobs and apprenticeships secured in new £2.7 billion deal

Published: 25 February 2016

A new £2.7 billion partnership between Scotland's largest council and the country's biggest social landlord will secure jobs for the next 30 years.

A new £2.7 billion partnership between Scotland's largest council and the country's biggest social landlord will secure jobs for the next 30 years.

The joint venture between Glasgow City Council and Wheatley Group, parent company of Glasgow Housing Association, means Wheatley Group would take a 50% shareholding in City Building Glasgow, becoming a partner and joint owner. It will secure 2000 jobs and more than 2000 apprenticeships as well as sustaining employment for disabled workers at City Building, the council's successful arm's-length construction company that has returned £50m to the council to date and undertaken 1000 craft apprenticeships.

Councillor Frank McAveety, Leader of Glasgow City Council, said: "This deal is a hugely important step that secures jobs, apprenticeships and training places, and future investment for the city.

"It will guarantee 30 years of work, worth £2.7billion, in challenging economic times and generate a further £225million for the city's wider economy every year.

"Wheatley Group's investment demonstrates how our partnership has worked over the past 13 years and the group's complete confidence in City Building to continually deliver the quality and service they expect."

Gordon Sloan, Chair of Glasgow Housing Association (GHA) and a director of Wheatley Group, said: "Our number one priority is to ensure our tenants and factored homeowners continue to receive an outstanding repairs service in the years ahead and the new joint venture gives us the best opportunity to do that.

"GHA and Wheatley have a strong and productive record of partnership working with City Building and Glasgow City Council and we look forward to building on that excellent platform in the years ahead."

Stuart Patrick, Chief Executive of Glasgow Chamber of Commerce, said: "This is fantastic news for Glasgow's economy as this joint venture not only secures thousands of jobs and apprenticeships, but also develops and retains these vital skills in the city, paving the way towards future growth and prosperity in the decades to come."

The structure of the joint venture means that City Building will carry out all Glasgow Housing Association repair work.

In addition, other work would be carried out by City Building's manufacturing division Royal Strathclyde Blindcraft Industries (RSBi), which is committed to providing opportunities for people with disabilities.  RSBi currently have 240 employees.

The figure of £2.7 billion is explained by the annual figure of £90million - the value of the joint venture's delivery of Wheatley Group's £33million (excluding VAT) repairs service in the West of Scotland, GHA's £27million capital investment programme and Glasgow City Council's own repairs, worth £30 million - over the thirty year period.

The joint venture proposal was approved by the Wheatley Group board on 24 February and will be considered by Glasgow City Council's Executive Committee on 3 March.

City Building is one of the largest construction companies in Scotland, employing 2287 people - including 333 apprenticeships - and one of the 100 largest in the UK.

Wheatley Group is the parent company of Glasgow Housing Association.