BIRMINGHAM: Council to borrow £14m for new BBC HQ

The cabinet will consider plans to borrow on behalf of the enterprise zone where the now derelict tea factory is located

Kate Knowles - Local Democracy Reporter | Tuesday 25th April 2023 7:54am

Birmingham City Council is set to borrow £14.3 million to fund the development of Digbeth's Typhoo tea factory into the new BBC broadcasting centre.

Developers Stoford Digbeth Ltd are seeking the money to plug the financial gap which currently makes the project commercially non-viable.

Another £429k will be borrowed to fund the council's related costs for the project such as consultancy fees and legal advice.

Cabinet members will discuss a report and recommendations to support the prudential borrowing at a meeting tomorrow (Tuesday) morning.

The development is part of a broader plan to revitalise Digbeth by attracting investment and reducing the number of vacant buildings which contribute to antisocial behaviour.

The overall aim is to raise the value of surrounding premises and “improve economic opportunities, enhance productivity, and to attract high wage jobs to Digbeth” according to the council report seen by the LDRS.

The Typhoo building sits within the enterprise zone overseen by the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) Board.

It retains business rates which are expected to grow by an extra £1.5 million a year from 2026 due to the scheme enabling greater investment.

This equates to £31.5 million additional income throughout the BBC's lease until 2046, covering the cost of the council's borrowing on behalf of the enterprise zone.

The total cost of redeveloping the Typhoo tea factory is £69.3 million with £55 million coming from private investment.

The building will provide the new home for BBC Midlands Today, BBC Radio WM, The Archers, BBC Radio One's Newsbeat and BBC Asian Network, currently based at the Mailbox.

A huge ten-acre plot of underutilised land around Typhoo Wharf, and the surrounding canal basin will be transformed to provide the media behemoth with 84,000 sq.ft of offices and studios.

An additional 2,780 sq. ft will be devoted to retail space.

The BBC began searching for a new premises in November 2021 and settled on the tea factory because of the proposal's focus on sustainability and low carbon construction, future flexibility and build design.

Developers say the new building “will be instantly recognisable to everyone who travels into Birmingham on HS2, the tram or into our existing railway stations.”

Speaking last month, after the council's planning committee unanimously signed off the scheme, leader Ian Ward said: “The new BBC HQ at The Tea Factory represents a huge vote of confidence in Birmingham and our creative sector, so I'm delighted the project has now been granted planning permission.

“Our vision for Digbeth is to build on established creative businesses, attracting and encouraging new ones, and the BBC move added to the coming of HS2, the Midland Metro extension and the Masterchef move will help us attract further investment.

“Birmingham is a city of untapped talent and the BBC's investment will help that talent flourish and grow, as we create new jobs and opportunities for our citizens.”

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