Balancing regeneration and decarbonisation: maximising funding solutions

At UKREiiF, I had the pleasure of joining a fantastic panel to explore how collaboration between the public and private sectors can unlock the funding and vision needed to drive meaningful change. What stood out was the strong alignment across the sector; a shared belief that lasting impact depends on long-term, strategic collaboration.

I opened with the challenge of moving beyond short-term, single-site developments if we want to achieve lasting impact. Encouragingly, we’re now seeing more local authorities and developers come together around portfolios of sites, often over several years. That opens the door for organisations like ours to contribute not just through development, but also by integrating specialist expertise - such as our decarbonisation offer, led by Kelly Crews, our Head of Decarbonisation - to deliver change across entire estates. It’s within these broader, more strategic partnerships that real transformation begins.

Kelly, who was also part of the discussion, outlined a range of funding streams supporting decarbonisation, including the Low Carbon Skills Fund (LCSF) and the Public Sector Decarbonisation Scheme (PSDS). While recent announcements during the Spending Review highlighted closure of these funding streams, other funding routes, such as the Heat Network Efficiency Scheme, continue to play a vital role in reducing emissions, while supporting wider regeneration goals. However, coordinating different funding streams can often be complex. Kelly emphasised the importance of taking a joined-up, strategic approach - bringing together decarbonisation, placemaking, and infrastructure planning to deliver long-term community value, a theme she explored further in her UKREiiF session, ‘Decarbonisation and beyond’.

Viability remains a major challenge. As I noted during the session, many regeneration appraisals simply don’t stack up at face value. But that’s exactly why we need to be more entrepreneurial. It’s too easy to walk away when the numbers don’t work. Instead, we need creativity and courage - because some schemes may not look viable on day one, yet deliver enormous social, environmental, and economic value over time.

Jane Anderson, Investment Manager for Homes England, joined the discussion and offered a funder’s perspective, highlighting that institutional investors, banks, and progressive developers are now applying far more rigorous due diligence when it comes to sustainability. She noted that funders are increasingly looking beyond compliance to broader place-based benefits, such as wellbeing, air quality, and cultural identity. Environmental, social, and economic outcomes are no longer optional - they're central to investment decisions. Jane cited successful examples of public-private partnerships that are helping to address environmental goals and societal challenges.

Lynda Rawsthorne, Head of Government Property Profession at the Cabinet Office, highlighted a shift in government thinking towards a more holistic view of value - one that considers carbon impact and whole-life costs alongside traditional financial metrics. While funding remains a significant constraint, she emphasised that this integrated approach is helping unlock new models of investment and collaboration.

I added that government support is especially crucial during the early, higher-risk stages of development - such as master planning, business case development, and viability assessments. Stable, long-term funding programmes would give local authorities the confidence to plan strategically and attract institutional investment. There’s also a clear need for greater flexibility and alignment between public funding streams to better reflect the mixed-use, cross-sector nature of today’s regeneration projects.

Lynda acknowledged that risk allocation in public-private partnerships is a key challenge, with clear, transparent frameworks being essential to ensure risks are shared appropriately. She pointed out that the Treasury needs solid, data-driven justifications to approve public investment - and that the success of public-private partnerships can provide the evidence needed to de-risk innovation and secure earlier support for developments.

On the topic of social value, Lynda stressed the importance of asking communities what truly matters to them - and investing accordingly. With finite resources, growth strategies must deliver both economic and social returns.

There was consensus across the panel that social value should go beyond box-ticking. I noted that while KPIs - such as apprenticeship numbers or volunteer hours - are important and have their place, they don’t always capture the full picture. Sometimes, the most transformative impact comes from small-scale interventions, like refurbishing empty shops and offering rent-free space to local entrepreneurs. These kinds of actions may be harder to quantify, but their ripple effects on communities can be deep and lasting.

Finally, when asked what the industry needs to do now, I offered, ‘don’t let perfection be the enemy of good’. There are already great things happening. If we wait for perfect conditions before taking action, we’ll miss too many chances to make real impact. Let’s keep moving, learning, and working together with shared purpose.

Want to learn more?

If you’re looking to understand how these insights could apply to your organisation or simply want to explore the topic further, get in touch with David Atkinson or Kelly Crews. They’d be pleased to talk through your challenges and how we can help.

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Find out more about Willmott Dixon at UKREiiF 2025 and further event insights.