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

Posted On: 26th February 2016

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

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.

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 £2.7bn is explained by the annual figure of £90m – the value of the joint venture’s delivery of Wheatley Group’s £33m (excluding VAT) repairs service in the West of Scotland, GHA’s £27m capital investment programme and Glasgow City Council’s own repairs, worth £30m – 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.

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 £2.7bn, 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.”

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