Central BCR
2.7:1
Co-located skills hub
Learning, library and progression in one civic front door.
The proposition brings adult learning, higher education pathways, employability support and public library activity together in a central Liverpool learning hub.
Project cost
£16.0m
Annual learners
550
Learning space
3,000
Location
Project location: Royal Liver Building.
The project marker uses the Royal Liver Building coordinates, with other Liverpool reference points available as clickable map markers.
A clear investment case for a flagship learning centre.
The business case presents a consistent central appraisal, with downside sensitivity shown separately from headline value for money.
Benefits, costs and NPSV
Present value, cost and NPSV on a comparable basis.
Learner mix by Year 5
Steady-state annual learner profile from Year 5.
Strategic Case
A visible skills pathway from basic skills to postgraduate study.
The proposed hub responds to low qualification levels, skills shortages, digital exclusion and weaker town centre activity by placing learning progression in a prominent, accessible civic setting.
Case for change
Skills and attainment constraints limit access to better-paid local opportunities.
No qualifications
Working age residents with no qualifications are materially above the national benchmark in the case area.
Level 4+
Higher-level skills are a key barrier to accessing growth sectors.
Employer demand
Clean energy, digital, health, logistics and visitor economy sectors are framed as future opportunity areas.
Town centre vitality
A prominent reused building is expected to increase footfall and confidence.
Progression pathway
Provision spans entry level through degree and postgraduate routes.
0-2
Adult and basic skills
English, maths, digital skills and community learning provide re-entry routes.
3
Access to HE
Bridging provision supports learners preparing for higher-level study.
4-7
Higher education
Foundation degree, degree and postgraduate pathways retain talent locally.
Economic Case
Central value for money is 2.7:1, with downside sensitivity retained separately.
The business case uses the central case as the headline and treats the 2.1:1 figure as a learner-demand downside sensitivity.
Present value benefits
£47.3m
Economic costs
£17.8m
NPSV
£29.5m
BCR
2.7:1
BCR sensitivity testing
Central case and sensitivities shown on the same appraisal basis.
Calculation basis
Green Book-aligned arithmetic used for the business case.
BCR = PVB / PVC
NPSV = PVB - PVC
Central BCR = 47.3 / 17.8 = 2.657 = 2.7:1
Learner sensitivity = 37.8 / 17.8 = 2.124 = 2.1:1
Appraisal period30 years
Discount rate3.5%
Optimism bias20%
Additionality factor60%
The calculation basis follows HM Treasury Green Book 2026 definitions for BCR and NPSV.
Preferred option
Co-located learning hub.
Option 3 is retained as the preferred option because it maximises learner pathways, brings complementary services together and performs strongly under sensitivity testing.
Distributional value
£4.9m in the central case.
The appraisal applies a distributional uplift for place-based skills benefits, shown separately from direct learner benefits.
Wider benefits
Qualitative score of 7.9 out of 10.
Unmonetised benefits cover the local economy, deprivation, regeneration and community outcomes.
Financial Case
The financial case is reconciled around a £16.0m capital model.
The funding and spend profile use the internally consistent model total rather than the draft named-source subtotal.
Funding package
Rounded funding model for the preferred option.
Capital spend profile
Capital spend by delivery year.
Funding assurance
Clean model total used for the business case.
City Fund£8.0m
Other public / grant£8.0m
Funding total£16.0m
Funding sources reconcile to the £16.0m model total.
Cost headings
Financial model total used in the business case: £16.0m.
| Cost heading | Business case value | Basis |
|---|---|---|
| Site cost / value and fees | £1.521m | Spend profile table |
| SDLT | £0.056m | Spend profile table |
| Development costs | £12.000m | Spend profile table |
| Contingency | £1.416m | Spend profile table |
| Professional fees | £1.000m | Spend profile table |
| Total | £16.000m | Clean model total |
Financial consistency checks
Values are rounded for display and checked against the embedded data.
Funding total£16.0m
Spend profile total£16.0m
Primary delivery yearYear 2
Year 2 share84.4%
The economic case uses £17.8m public sector economic costs including optimism bias; the financial case uses the £16.0m cash funding model.
Management Case
Council-led delivery with clear governance and assurance.
The management case sets out how the project is controlled, governed and delivered, with escalation routes and risk management built into the programme.
Milestone programme
Indicative programme from design completion to opening.
2022 Q1
RIBA Stage 3 and planning submission
Design and cost plan signed off, with planning and conservation consent submitted.
2022 Q2
Planning consent and tender preparation
RIBA Stage 4 completed and project taken to market.
2022 Q3
Contractor appointment
Tenders assessed and main contractor appointed.
2022 Q4 - 2023 Q3
Refurbishment and fit-out
Building works progress through refurbishment and client fit-out.
2023 Q4
Learning Centre operational
Facility opens as a co-located skills, learning and library hub.
Governance
Project board reporting into the City Fund Board.
The project board manages control, assurance and partner alignment, with escalation to the programme sponsor board.
Assurance and control
Stage gates, cost checks and sponsor reporting.
Delivery controls combine cost plan review, programme monitoring, risk review and formal approvals at key decision points.
Delivery responsibilities
Single accountable client-side lead.
The Council leads the asset, funding and programme controls, with delivery partners providing specialist design, construction and operational input.
Risk Management
Key risks are visible and mitigated.
Mitigated through surveys, early works, strip-out discovery and contingency allowance.
Mitigated through building security, wind and weather protection, and early quantification of repair needs.
Mitigated through a detailed cost plan, contingency and value engineering routes if tender returns exceed budget.
Commercial Case
A single-stage design and build route supports price and delivery certainty.
The commercial case defines how the project is taken to market, how delivery risk is allocated and how occupier arrangements support the long-term operating model.
Procurement
Design and build single-stage route.
The selected route prioritises price certainty, contractor design responsibility and a single point of delivery accountability.
Contract form
NEC4 ECC Option A.
The contract arrangement supports proactive risk management, programme control and a priced activity schedule.
Market approach
Competitive tender with clear output requirements.
The route allows the client team to test price, quality and programme deliverability while retaining a defined specification for the learning hub.
Risk allocation
Risks sit with the party best able to manage them.
Contractor risk
Detailed design coordination, construction methodology, supply chain management and programme delivery.
Client risk
Brief, approvals, stakeholder requirements, funding decisions and retained asset responsibilities.
Shared controls
Change control, risk reviews, cost reporting and gateway decisions keep commercial exposure visible.
Value management
Value engineering remains available if tender returns exceed the approved funding envelope.
Occupier and lease basis
Council freehold with long leases for occupiers.
The commercial model keeps the asset in Council ownership and uses occupier agreements to support stable long-term use, partner accountability and co-located service delivery.
OwnershipCouncil freehold
Occupier basisLong leases
Commercial focusCertainty