Council calls for national guarantee to unlock town-centre regeneration
The letter, to the Right Honorable Angela Rayner MP, asks the Government to consider a National Town Centre Investment Guarantee scheme, starting with a small number of pilot councils.
In their letter, the council’s leaders identify Rugby Central as an example of the challenge facing many towns. The council has an adopted development brief for the site and a ten-year plan for the wider town centre. However, the council and the site's private owner have different views of its value.
Under the proposal, a council would first need an independently assessed business case showing that buying a strategic property such as Rugby Central could deliver greater long-term public value than leaving it in its current use. The Government would then provide a limited guarantee against unforeseen losses or costs.
Councils would still have to show that any investment was affordable, prudent and sustainable. They would also need clear outcomes, independent appraisal and risk assessment, review points and strong governance.
Cllr Louise Robinson, Leader of Rugby Borough Council, said: "Rugby has a clear plan for its town centre and we are ready to act. But councils cannot responsibly take every property risk on their own, especially when essential services and taxpayers must be protected.
“We are asking the Government to consider a practical guarantee, with firm safeguards, that could help Rugby and other towns turn ambition into delivery."
Cllr Jerry Roodhouse, Deputy Leader of Rugby Borough Council, said: "This proposal is not a blank cheque. Councils would have to make a compelling, independently tested case and remain accountable for delivery.
“The aim is to share carefully defined risk where intervention could bring lasting value to a town, without putting vital local services at unacceptable financial risk."
The council's plans for Rugby town centre include homes, health and community facilities, skills and employment, support for independent businesses, culture, leisure and improved public spaces.
The proposed guarantee would assess the wider value to a place over five, 10 or 15 years. This could include housing, health, employment, skills, footfall, reduced vacancy, community facilities, public health and private investment.
The letter also asks the Government to clarify that independently evidenced, long-term economic, social, housing, health and environmental outcomes can form part of a council's Best Value assessment for strategic regeneration acquisitions.
It proposes Rugby as a potential pilot location, subject to appropriate governance and appraisal, and asks for the idea to be considered alongside the Government's review of local government reorganisation.
The Government announced a review of the local government reorganisation programme on 7 September 2026. Plans for Warwickshire are among those being reviewed and paused.