Glasgow Construction Growth Strategy: Councillor Ruairi Kelly Plans Glasgow 2026

Key Points

• Direct Collaboration Proposed: The new deputy leader of Glasgow City Council, Councillor Ruairi Kelly, announced that the local authority intends to work directly with the construction sector to tackle pressing infrastructure needs and generate employment.
• Socio-Economic Objectives: Kelly highlighted that a robust construction industry can provide career pathways out of poverty, particularly for working-class individuals, replacing opportunities previously offered by heavy industry.
• Substantial Land Availability: Glasgow currently possesses 767 hectares of vacant and derelict land—significantly more than comparable cities like Edinburgh (131 ha), Liverpool (494.96 ha), and Manchester (403 ha). The council owns between 200 and 250 hectares of this total.
• Risk-Sharing Model at Cowlairs: A joint venture liability partnership involving the council, the Scottish National Investment Bank, and Aviva Capital Partners has been established at a derelict site in Cowlairs to deliver over 1,000 homes, serving as a framework for sharing development risks.
• Planning and Regulatory Challenges: While the council’s planning department has returned to full headcount, complex applications, increased regulations, and rapid cost inflation continue to impact project viability.
• National Lobbying Strategy: The local authority plans to lobby the Scottish Government for simplified planning processes, fluid funding models, and national tax incentives—such as tax write-offs for transforming empty city centre commercial units into residential entities.
• City Centre Population Targets: The council aims to expand the city centre population to 40,000 by 2035, intending to create diverse communities, boost footfall, and increase passive surveillance to curb anti-social behaviour.

Glasgow (Glasgow Express) October 13, 2026 – Glasgow City Council is moving to establish a direct working relationship with the construction industry to address infrastructure challenges, redevelop vast tracts of vacant land, and support local employment. Councillor Ruairi Kelly, the newly appointed deputy leader of Glasgow City Council, outlined the local authority’s strategic vision to open dialogue with contractors and developers, pursue shared risk models for site remediation, and advocate for national regulatory and tax reforms. The approach aims to utilise the city’s extensive land reserves to drive economic regeneration and expand urban housing capacity.

How Can Direct Industry Collaboration Benefit Glasgow’s Regeneration?

As reported by Project Scotland, Councillor Ruairi Kelly stated that “looking across Glasgow, there’s definitely not enough cranes.” Kelly emphasised the necessity of preparing land and structuring projects to stimulate the construction sector, noting that

“there’s nothing like a strong construction sector to lift predominantly working-class fellas out of poverty and give them a career that they can be really successful in, that gives them a purpose, and really a life that heavy industry doesn’t offer anymore; a strong construction sector can do that.”

Acknowledging that systemic changes require time, Kelly, who previously served as a health and safety manager at Brand Access Solutions (formerly Lyndon SGB), stated that Glasgow could be entering a “really exciting” phase of development. He noted that while these efforts occur within “some of the most inhospitable economic circumstances ever seen,” grounds for optimism remain.

Kelly admitted that “Glasgow isn’t anywhere near what we want it to be,” but pointed to a distinct structural advantage:

“there’s a unique selling point for Glasgow in that there’s lots of cities that don’t have anywhere near the availability of land that Glasgow does – and if we’re able to work in partnership with industry, we can release a lot more land for development.”

Official figures show that Glasgow possesses 767 hectares of vacant and derelict land. In comparison, Edinburgh records 131 hectares, Liverpool holds 494.96 hectares, and Manchester accounts for 403 hectares.

What Strategic Partnerships Are Being Implemented for Derelict Sites?

To address vacant land, a pioneering project has been initiated at a derelict site in Cowlairs, situated in northern Glasgow. The council-owned site, which has remained disused for more than 30 years, is designated for the delivery of over 1,000 residential units.

The initiative operates through a joint venture liability partnership comprising Glasgow City Council, the Scottish National Investment Bank, and Aviva Capital Partners. This framework enables the local authority to retain co-ownership and maintain influence over development outcomes while absorbing part of the commercial risk associated with complex brownfield locations.

As reported by Project Scotland, Kelly explained that “there’s work to be done to remediate sites to ensure they are viable propositions for housebuilders and we’re working through the sites that are in our ownership.” With the local authority controlling between 200 and 250 hectares of the city’s 767 hectares of derelict land, Kelly noted:

“We can either bring those sites to the market or go into partnerships, as we have done at Cowlairs. That gives us a bit more control over the pace of the building and it also helps us take more of the risk on. We’re not expecting the industry to take all that risk – and if we can share it, then it helps everybody speed things up.”

How Is the Council Addressing Planning Regulations and Financial Volatility?

Regarding municipal operations, Kelly confirmed that Glasgow City Council’s planning department has returned to full staffing levels following previous shortfalls. However, he observed that increasing regulatory burdens and project complexity continue to create operational bottlenecks.

As reported by Project Scotland, Kelly stated that

“that’s not something that we have control over, but we will speak to the Scottish Government and make representation on areas where we believe we could help simplify the process.”

Specific focus areas include addressing disproportionate standards applied to social housing relative to private developments, alongside advocating for flexible funding mechanisms to help developers mitigate sudden material cost increases and inflationary pressures.

Kelly elaborated on the financial friction affecting development timelines, noting that “getting things through planning isn’t the end of it – what was feasible six months ago ends up not being, by the time it’s through the system.” He added that

“that’s why we need to get the impact funding sorted out to address the cost of financing and ensure things are getting through as quickly as possible – but I also think there’s got to be even greater tax incentives, which we (as a council) can’t offer.”

What Role Do Tax Incentives Play in Urban Housing and Public Safety?

The local authority intends to advocate for national tax mechanisms that encourage the conversion of empty commercial units in the city centre into residential dwellings. This strategy forms part of the council’s targeted initiative to increase the city centre population to 40,000 by 2035.

According to Kelly, expanding the residential base is expected to assist in mitigating rising anti-social behaviour in central districts, where a dispersal zone was previously designated. By establishing urban neighborhoods comparable to areas such as Dennistoun, the West End, and the Southside, residents would live, socialise, and access local public services locally. This increased presence is designed to generate passive surveillance and maintain continuous footfall in previously under-utilised areas.

The proposed financial structures would enable developers to offset investments against tax returns when repurposing vacant properties for residential use, potentially creating a framework for continuous urban renewal capable of delivering thousands of new homes.

As reported by Project Scotland, Kelly stated:

“I don’t want to have a city centre that’s just students and retirees – there has to be everything in between.”

Referencing international models where urban family living is common, Kelly added:

“I don’t want people to feel the need to leave Glasgow to go to East Renfrewshire or East Dunbartonshire to bring a family up. We want a thriving city centre, but that can’t happen if people are just visiting once or twice a month – it needs people in it day in, day out.”

In conclusion, Kelly reiterated the local authority’s commitment to collaboration with private sector partners, stating:

“We want the perception of Glasgow to be a place to do business – that we’re very much open for business, outward looking, and engaging with the construction sector. We need the construction industry to be firing on all cylinders for us to achieve our aims and aspirations for the city.”

Background of Glasgow’s Urban Land and Planning Development

Glasgow’s substantial volume of vacant and derelict land is largely rooted in the post-industrial decline of the 20th century, during which heavy industries, shipbuilding, and manufacturing shifted away from the River Clyde and surrounding urban centers. The resulting loss of industrial manufacturing left hundreds of hectares of land contaminated or disused across the municipality. Managing these sites has posed long-standing challenges for local government, as ground remediation and infrastructure installation require significant capital investment before commercial housebuilding becomes financially viable.

Historically, brownfield sites across the city remained vacant due to high upfront remediation costs and rigid planning constraints. Recent local government strategies have increasingly focused on urban density, sustainable land reuse, and housing supply expansion. The establishment of public-private investment frameworks—such as joint ventures with national investment bodies and institutional capital funds—represents a shift toward shared financial exposure. Concurrently, broader economic pressures, including rising construction material prices, high borrowing costs, and national regulatory standards, have prompted local authorities to seek institutional and national regulatory solutions to maintain project delivery rates across major Scottish cities.

Predictions: Impact on Key Stakeholders

The implementation of these measures and collaborative framework decisions is expected to impact several key groups across the region:

• Construction Companies and Developers: Shared risk models and direct council involvement in land remediation are likely to lower barriers to entry for complex brownfield projects. If national lobbying efforts successfully yield simplified planning frameworks and tax incentives, developers may experience reduced holding costs and shorter development cycles for commercial-to-residential conversions. However, persistent material cost inflation and regulatory compliance requirements will continue to require careful risk management.
• Working-Class Jobseekers and Local Trades: Increased construction activity across council-owned sites could expand apprenticeships, skilled trade positions, and long-term employment opportunities within the local labor market, offering alternatives to legacy industrial roles.
• Glasgow City Centre Residents and Businesses: Achieving the target population of 40,000 by 2035 through increased residential development may foster continuous street-level footfall. For local businesses, this demographic expansion could provide a stable local consumer base. Additionally, higher residential density and enhanced passive surveillance may contribute to reductions in isolated anti-social behaviour in central commercial zones.
• Housing Applicants and Families: Releasing local authority land for residential developments like Cowlairs could expand housing supply options within the city boundaries. This increased supply may assist in retaining families who might otherwise relocate to outer suburban authorities such as East Renfrewshire or East Dunbartonshire in search of suitable housing and public amenities.