The global financial crisis is having a serious impact on development and regeneration projects in Nottingham.
Students could soon be feeling the effects of the global financial crisis if Nottingham City Council is not able to recover the £42 million it invested in Icelandic banks prior to their collapse. While other local authorities such as Nottingham County Council decided against putting public money in the banks, Nottingham City Council continued with their investments and is now attempting to recover the funds. In a statement released on their website, the City Council maintains that at the time the Icelandic banks had “an F1 rating – that’s one below the highest possible credit rating” and that the situation “is not having any detrimental effect on Council services”.
A lack of credit is meaning that plans to regenerate parts of the town are being put on hold until the economy recovers. The latest and biggest development is the collapse is the Trent Basin project near Sneinton, which would have revitalised the area with housing, restaurants and 2,000 units of housing worth £350 million. The developer, ISIS (not the nightclub), has backed out of the joint project with the city council, East Midlands and British Waterways, citing the deteriorating property market as a reason for not going ahead.
With financial experts now admitting that we have entered a recession (a period defined by two quarters of negative economic growth), it is clear that cities the world over are feeling the pinch. It appears that Nottingham is no exception.