New Support Needed As Arch To Fall

We don't just do planning, we help put deals together

It seems that time and political sentiment is against Arch, the property investment and development company for Northumberland. The public voted in last year’s May elections and Conservatives won seats against Labour. A key manifesto pledge was to review and wind up Arch.

The Conservatives saw Arch as a sympathetic Labour vehicle, putting investment into Labour voting heartlands at the cost of Tory leaning market towns and more isolated rural communities.

More recently there have been allegations around corporate governance and mismanagement. True or not, I don’t wish to pass comment on rumour and possible shenanigans. I have no political axe to grind.

My position regarding Arch is based on personal observations, commercial sense and professional relationships. Yes, I was one of the small businesses that benefited from a commercial relationship with Arch.

From my professional and commercial perspective I’m sorry to see the likely demise of Arch. It seems politics have overtaken commercial sense. At many levels, Arch looks to be a successful investment vehicle that, if necessary, could have been improved and developed.

In the private sector, if there are issues with the model then we take action, surgical if necessary, to remove problems and ultimately find a fix to ensure future success.

In the latest published annual statement and accounts for Arch, for the year ended March 31 2017, we see a positive position highlighted. Cllr

Richard Wearmouth, chair of Arch, outlines recent successes. These include the headline fact that turnover for Arch was doubled to over £22m yearon-year, generating a profit of £2.2m.

Profits are recycled from their activities into investment in residential and commercial projects, as well as a ‘dividend’ that goes back to Northumberland County Council and taxpayers.

Company assets grew to £320m and after repayment of any debt and tax this would generate profits of £59m to the people of Northumberland.

But also, the report says that more than £143m of private sector inward investment was attracted into the county, creating more than 460 jobs.

Professionally, I’m more aware of the fact that hundreds of homes – social and private-were managed, rented and being built via a sister homes company called Ascent.

I’ve heard mixed views about Arch, but whatever your opinion, the facts are quite clear – they have generated jobs for Northumberland and profits for the council; surely that is good?

We were recently involved with a 50 unit rented housing scheme for Amble. Unfortunately, we have been instructed to withdraw the application whatever the reason behind it, that’s 50 rented properties that Amble needs but won’t now get.

Whatever happens, we need a political environment – a commitment and sentiment-that supports commercial development but more importantly housing investment across Northumberland that meets the different needs across a very diverse county. We should build on the success of Arch.