The Chancellor of the Exchequer, John Healey MP, has confirmed a £20m government investment into Liverpool's historic Littlewoods building, a move the developer says can turn the project "from ambition to action."
The funding was announced during the Budget statement on 28 October 2026. It will support plans to restore and redevelop the long-vacant Edge Lane site into the Liverpool Creative Campus, subject to final business case approval.
Plans for TV and film studios
Since December 2023, work has been underway to convert the site into a TV and film studio complex in a £70m project. Two new 20,000 square foot studio stages are planned as the first structures to be built on the land. The existing building will be brought back to life and used alongside the new studios, as well as existing facilities at The Depot, which opened in 2021.
The investment from the Growth Mission Fund will support the creation of a 260,000 sq ft creative production campus. The funding is also associated with ScreenWorks Liverpool, a specialist post-16 education facility for up to 800 students. Planning permission was granted in 2024, with new wings expected to complete on site this year and the full scheme earmarked for a 2027 completion.
Reactions from leaders and developer
Tim Heatley, co-founder of Capital&Centric, the developer behind Littlewoods, said the government backing represented a "huge vote of confidence" in the project. He said: "Littlewoods has been part of Liverpool's story for generations, and this is the moment Capital&Centric have been working towards for 10 years. This £20m is a huge vote of confidence and it moves us from ambition to action."
Mr Healey said: "When I talk about unleashing Britain's innovation power, I mean in every part of Britain. That's why we reformed the Treasury's investment manual - The Green Book - so that we can invest in the potential of every town and city. That's what I do today [...including] £20m to restore Liverpool's Littlewoods building."
A delegation from the city has visited Downing Street on a number of occasions to lobby for government support. Earlier this year, Cllr Liam Robinson, leader of Liverpool Council, told the ECHO there was "real ministerial interest" in delivery of the scheme when he presented the case alongside Metro Mayor Steve Rotheram.
Mixed response from councillors
Cllr Robinson said: "This is a huge moment for Liverpool and the region and a major vote of confidence in the city's future. For generations, the Littlewoods site was synonymous with jobs, opportunity and enterprise." He added: "We now have the chance to write a new chapter in that story and create a destination that brings together creativity, technology, innovation, skills and business growth. Most importantly, this is about creating opportunities for people."
Mr Rotheram said: "We've never been short of creative talent in our part of the world. From music and film to gaming and digital technology, we've got people and businesses doing incredible things – and I want to make sure more of the jobs and opportunities that come with that success stay right here in our region."
Cllr Kris Brown, the Liberal Democrat member who called in the decision to proceed with the scheme in 2021, described the funding as a "government bail out" and called for scrutiny of how the cash is used. He said: "A funding boost to the Littlewoods project from central government is welcomed to finally get this project off the ground. Let's be clear: we are only waiting on this government bailout today because the risks I highlighted years ago were completely accurate."
Cllr Brown said hard work must start now government backing had been secured, adding: "We cannot afford any more false dawns. The developers must urgently get a main contractor on site, and the council must implement rigorous, transparent oversight. We need guarantees that the promised jobs, skills training, and world-class studio spaces will actually materialise, and that costs won't spiral out of control yet again."
