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| How philanthropy breathed new life into a forgotten Salford suburb | How philanthropy breathed new life into a forgotten Salford suburb |
| (4 months later) | |
| Neil McArthur has never forgotten the words uttered to him by a London-based property guru when he said he wanted to base his firm’s technology division in Irlam, the district of Salford he grew up in: “What the hell do you want to build it in the middle of Beirut for?” | Neil McArthur has never forgotten the words uttered to him by a London-based property guru when he said he wanted to base his firm’s technology division in Irlam, the district of Salford he grew up in: “What the hell do you want to build it in the middle of Beirut for?” |
| McArthur bristled. The Irlam he was born into, a good 30 years before he founded the telecoms company that became TalkTalk, was an industrial boom town. Everyone had a job, if not at the steelworks like his dad, then in the factories making soap, margarine, rope or baskets. “It was manically busy,” says the 62-year-old, “with thousands of people coming in by train to work.” | McArthur bristled. The Irlam he was born into, a good 30 years before he founded the telecoms company that became TalkTalk, was an industrial boom town. Everyone had a job, if not at the steelworks like his dad, then in the factories making soap, margarine, rope or baskets. “It was manically busy,” says the 62-year-old, “with thousands of people coming in by train to work.” |
| By the time his colleague in the capital made the unflattering comparison with war-torn Lebanon, things had changed in Irlam. The industry was gone, and a third of the shops were boarded up, with only the brothel and the bookies doing a brisk trade. Traffic at the railway station was now going in the other direction, as locals commuted 10 miles east into Manchester, or west to Warrington. | By the time his colleague in the capital made the unflattering comparison with war-torn Lebanon, things had changed in Irlam. The industry was gone, and a third of the shops were boarded up, with only the brothel and the bookies doing a brisk trade. Traffic at the railway station was now going in the other direction, as locals commuted 10 miles east into Manchester, or west to Warrington. |
| If you buy three shops in a row and do them up really well, it isn’t long before the neighbours get the paintbrush out. | If you buy three shops in a row and do them up really well, it isn’t long before the neighbours get the paintbrush out. |
| When TalkTalk soared, making McArthur millions as he fed the hunger for home broadband, most people in Greater Manchester would have struggled to point to Irlam on a map. They probably still can’t. It’s in a no man’s land that’s bit too far from the M60 ringroad; an unremarkable thoroughfare hemmed in by the Manchester ship canal and Chat Moss, a huge peat bog. Unlike other parts of Salford, it’s never had enough trouble with gangsters or poverty to get in the Manchester Evening News – which, ironically, was part of its problem, thinks McArthur: “It’s just never been quite poor enough to get on the radar.” | When TalkTalk soared, making McArthur millions as he fed the hunger for home broadband, most people in Greater Manchester would have struggled to point to Irlam on a map. They probably still can’t. It’s in a no man’s land that’s bit too far from the M60 ringroad; an unremarkable thoroughfare hemmed in by the Manchester ship canal and Chat Moss, a huge peat bog. Unlike other parts of Salford, it’s never had enough trouble with gangsters or poverty to get in the Manchester Evening News – which, ironically, was part of its problem, thinks McArthur: “It’s just never been quite poor enough to get on the radar.” |
| Regardless, in the early 2000s McArthur refused to believe his home town was dead. And the good thing about being the boss is that you can ignore the clever dicks in London who know Paris and Barcelona better than England’s north. So he put his foot down. He purchased “six acres in the middle of a moonscape” where the steelworks once stood, and spent £8.5m building an office for 700 workers. | Regardless, in the early 2000s McArthur refused to believe his home town was dead. And the good thing about being the boss is that you can ignore the clever dicks in London who know Paris and Barcelona better than England’s north. So he put his foot down. He purchased “six acres in the middle of a moonscape” where the steelworks once stood, and spent £8.5m building an office for 700 workers. |
| McArthur, who failed his 11-plus and became an electrical engineering apprentice at British Nuclear Fuels, started his first company, an engineering outfit, in 1981. Fifteen years later he launched a telecommunications firm, Opal, which in 2002 was bought out by Carphone Warehouse and became TalkTalk. At 46, McArthur found himself a very wealthy man. He bought all the gizmos and gadgets he’d ever wanted, picked up homes in Spain and Barbados, and then wondered what next. The answer: transform Irlam and neighbouring Cadishead. Together with his wife, Anne, he decided to dedicate a good chunk of his fortune into a making a huge difference on a micro level. | McArthur, who failed his 11-plus and became an electrical engineering apprentice at British Nuclear Fuels, started his first company, an engineering outfit, in 1981. Fifteen years later he launched a telecommunications firm, Opal, which in 2002 was bought out by Carphone Warehouse and became TalkTalk. At 46, McArthur found himself a very wealthy man. He bought all the gizmos and gadgets he’d ever wanted, picked up homes in Spain and Barbados, and then wondered what next. The answer: transform Irlam and neighbouring Cadishead. Together with his wife, Anne, he decided to dedicate a good chunk of his fortune into a making a huge difference on a micro level. |
| While Bill Gates uses his Microsoft fortune to tackle malaria, and Elon Musk focuses his efforts on space, McArthur keeps things hyperlocal. Over the past 12 years, his operation has poured £23m into this forgotten Salford suburb: £12m into his charity, the Hamilton Davies Trust, and £11m into a “quasi-commercial” regeneration company, which literally bought up much of the high street in order to bring it back to life. It is an investment model regarded with envy by Greater Manchester’s other nine boroughs, but one that raises questions of how healthy it is for one rich man to have such an influence over one small place. | While Bill Gates uses his Microsoft fortune to tackle malaria, and Elon Musk focuses his efforts on space, McArthur keeps things hyperlocal. Over the past 12 years, his operation has poured £23m into this forgotten Salford suburb: £12m into his charity, the Hamilton Davies Trust, and £11m into a “quasi-commercial” regeneration company, which literally bought up much of the high street in order to bring it back to life. It is an investment model regarded with envy by Greater Manchester’s other nine boroughs, but one that raises questions of how healthy it is for one rich man to have such an influence over one small place. |
| When rich people give big bucks to charity they often like to build fancy great things and slap their names on them: a concert hall, a museum extension, a hospital wing. That’s not McArthur’s style. He didn’t even want to put his name on the charity, coming up with the rather bland Hamilton Davies Trust by combining an old family name and his mother-in-law’s maiden name. | When rich people give big bucks to charity they often like to build fancy great things and slap their names on them: a concert hall, a museum extension, a hospital wing. That’s not McArthur’s style. He didn’t even want to put his name on the charity, coming up with the rather bland Hamilton Davies Trust by combining an old family name and his mother-in-law’s maiden name. |
| But if you have ever wondered what happened to the great northern philanthropic tradition – your Titus Salts, your Joseph Rowntrees, who built whole communities for their workers while getting rich on textiles or chocolate – then maybe McArthur is a worthy descendant. Not that he sees it that way: “The reason you had Victorian philanthropy is that you didn’t have high taxation, so the public sector didn’t have the money to build universities and schools and hospitals. So it was expected that the wealthy people would build these things. Now the expectation has been completely reversed.” | But if you have ever wondered what happened to the great northern philanthropic tradition – your Titus Salts, your Joseph Rowntrees, who built whole communities for their workers while getting rich on textiles or chocolate – then maybe McArthur is a worthy descendant. Not that he sees it that way: “The reason you had Victorian philanthropy is that you didn’t have high taxation, so the public sector didn’t have the money to build universities and schools and hospitals. So it was expected that the wealthy people would build these things. Now the expectation has been completely reversed.” |
| In 2004, two years after he became a “high-net-worth individual”, he set about buying up every empty shop in Irlam and Cadishead. He bought so many he can no longer recall how many he’s got – 100 units, he thinks, a mix of commercial and residential. It’s a lot in an area of just 20,000 people. The shops are now all spruced up and rented out for about £120 a week to curtain makers and carpet fitters, optometrists and tattoo artists. He bought five pubs, as well as the old post office, and a dilapidated petrol station he recently razed to make space for a new town centre. | In 2004, two years after he became a “high-net-worth individual”, he set about buying up every empty shop in Irlam and Cadishead. He bought so many he can no longer recall how many he’s got – 100 units, he thinks, a mix of commercial and residential. It’s a lot in an area of just 20,000 people. The shops are now all spruced up and rented out for about £120 a week to curtain makers and carpet fitters, optometrists and tattoo artists. He bought five pubs, as well as the old post office, and a dilapidated petrol station he recently razed to make space for a new town centre. |
| Despite a lingering suspicion about his motives, most local people appreciate McArthur. In Green Orchid Florist in Irlam’s high street, Luana Richardson supplements her income by selling honey made from Chat Moss bees. “We are a bit more in love with the area now,” she says. As the landlord, McArthur will rent only to businesses he likes: no more bookmakers or takeaways. He is a great believer in peer pressure: “If you buy three shops in a row and do them up really well then it isn’t long before the neighbours start looking sideways and get the paintbrush out.” Irlam now boasts that rarest of beasts, especially in the working-class north: a high street with next to no empty shops. | Despite a lingering suspicion about his motives, most local people appreciate McArthur. In Green Orchid Florist in Irlam’s high street, Luana Richardson supplements her income by selling honey made from Chat Moss bees. “We are a bit more in love with the area now,” she says. As the landlord, McArthur will rent only to businesses he likes: no more bookmakers or takeaways. He is a great believer in peer pressure: “If you buy three shops in a row and do them up really well then it isn’t long before the neighbours start looking sideways and get the paintbrush out.” Irlam now boasts that rarest of beasts, especially in the working-class north: a high street with next to no empty shops. |
| But the shops are small fry compared with other local projects McArthur has financed locally, usually in conjunction with Salford council: £1m towards a new sports centre; £200,000 towards a new home for Cadishead’s rugby club; £150,000 towards a sixth-form college; and dozens of smaller grants to the local Scouts, the synchronised swimming group, allotments and an array of public art projects. He is currently battling with the council to be allowed to contribute millions to a new NHS health clinic – a taboo among those who object to any whiff of privatisation in the health service. | But the shops are small fry compared with other local projects McArthur has financed locally, usually in conjunction with Salford council: £1m towards a new sports centre; £200,000 towards a new home for Cadishead’s rugby club; £150,000 towards a sixth-form college; and dozens of smaller grants to the local Scouts, the synchronised swimming group, allotments and an array of public art projects. He is currently battling with the council to be allowed to contribute millions to a new NHS health clinic – a taboo among those who object to any whiff of privatisation in the health service. |
| But McArthur found true love at Irlam railway station. This schoolboy trainspotter put in £1.1m of the £1.5m costs to reopen the derelict station building three years ago. It is now a charming cafe filled with vintage railway memorabilia, loved and used by all. He says he only really did it so that people passing through on the train didn’t look out of the window and think: “Beirut.” But now 50,000 more passenger journeys are made to and from the station each year. | But McArthur found true love at Irlam railway station. This schoolboy trainspotter put in £1.1m of the £1.5m costs to reopen the derelict station building three years ago. It is now a charming cafe filled with vintage railway memorabilia, loved and used by all. He says he only really did it so that people passing through on the train didn’t look out of the window and think: “Beirut.” But now 50,000 more passenger journeys are made to and from the station each year. |
| Transport for Greater Manchester wants to perform the same trick with 96 other stations, transforming them into “multi-purpose community hubs”. The problem is that the other 96 stations don’t have a McArthur fighting their corner. His energy is as important as his money. “You grind the buggers down eventually,” he says of his dealings with the local authority and other public bodies. | Transport for Greater Manchester wants to perform the same trick with 96 other stations, transforming them into “multi-purpose community hubs”. The problem is that the other 96 stations don’t have a McArthur fighting their corner. His energy is as important as his money. “You grind the buggers down eventually,” he says of his dealings with the local authority and other public bodies. |
| To get the station building reopened, he claims to have endured 100 meetings with Network Rail, slotted into the two days a week he is not at TalkTalk, where he remains innovation director. These days he exploits his contacts to go straight to the top. He recently managed to buttonhole Peter Hendy, the Network Rail chairman, lobbying for a six-mile railway to be reopened between Irlam and Altrincham. The plan is to run it initially as a heritage line, with a view to a full commercial reopening if Greater Manchester’s population skyrockets as projected. “You’ve got to start top-down, otherwise you’ve got no chance,” he says. | To get the station building reopened, he claims to have endured 100 meetings with Network Rail, slotted into the two days a week he is not at TalkTalk, where he remains innovation director. These days he exploits his contacts to go straight to the top. He recently managed to buttonhole Peter Hendy, the Network Rail chairman, lobbying for a six-mile railway to be reopened between Irlam and Altrincham. The plan is to run it initially as a heritage line, with a view to a full commercial reopening if Greater Manchester’s population skyrockets as projected. “You’ve got to start top-down, otherwise you’ve got no chance,” he says. |
| It’s a remark that highlights the importance of getting business involved in fighting for regional interests in London. Would Hendy have taken the meeting if he’d been pestered by a Salford councillor instead of a multimillionaire? | It’s a remark that highlights the importance of getting business involved in fighting for regional interests in London. Would Hendy have taken the meeting if he’d been pestered by a Salford councillor instead of a multimillionaire? |
| The question that hangs heavy, as McArthur gives me a proud tour of Irlam, pointing out the hanging baskets the trust gives out as “rewards” to businesses who tidy up their shopfronts, is whether it’s healthy for one person to own so much of a town. When the Barclay brothers carried out a massive buy-up of businesses on Sark, a tiny island off Guernsey, they were accused of subverting democracy. | The question that hangs heavy, as McArthur gives me a proud tour of Irlam, pointing out the hanging baskets the trust gives out as “rewards” to businesses who tidy up their shopfronts, is whether it’s healthy for one person to own so much of a town. When the Barclay brothers carried out a massive buy-up of businesses on Sark, a tiny island off Guernsey, they were accused of subverting democracy. |
| “No comparison,” says McArthur. He acknowledges that some in the area take issue with his domination, wrongly assuming he is lining his own pockets. “No one with any knowledge of property would think for a minute I invest in these things to make money,” he says. “I make a net loss in the regeneration business.” However, in a town where you can still buy a three-bed terrace for £130,000, you’d be naive not to question whether he is buying political influence along with the vape shops and faded old bakeries. | “No comparison,” says McArthur. He acknowledges that some in the area take issue with his domination, wrongly assuming he is lining his own pockets. “No one with any knowledge of property would think for a minute I invest in these things to make money,” he says. “I make a net loss in the regeneration business.” However, in a town where you can still buy a three-bed terrace for £130,000, you’d be naive not to question whether he is buying political influence along with the vape shops and faded old bakeries. |
| It’s a suggestion robustly denied by Roger Jones, an Irlam councillor for 34 years. He says the council is well aware of the accusation, which is why it is always frustrating McArthur by refusing to “cut corners” and making him go through normal planning procedures – most recently, after he installed an old railway signal on the road junction to the station. | It’s a suggestion robustly denied by Roger Jones, an Irlam councillor for 34 years. He says the council is well aware of the accusation, which is why it is always frustrating McArthur by refusing to “cut corners” and making him go through normal planning procedures – most recently, after he installed an old railway signal on the road junction to the station. |
| I can’t understand why Andy Burnham doesn’t get us all in a room and ask us to help | I can’t understand why Andy Burnham doesn’t get us all in a room and ask us to help |
| McArthur is cheerfully aware that not everyone likes his style. He doesn’t actually live in Irlam or Cadishead, but in leafier Glazebrook, three miles over the border in Cheshire. A recent victory was persuading the council that the trust could fix cracked paving stones quicker and cheaper by using a local tradesman. “Took five years,” he says. “Our guy makes a living laying driveways … You want to see how many flags we can lay for five grand compared with the council – by the time they’ve been out for three quotes and done all their usual stuff, they’ve spent five grand.” | McArthur is cheerfully aware that not everyone likes his style. He doesn’t actually live in Irlam or Cadishead, but in leafier Glazebrook, three miles over the border in Cheshire. A recent victory was persuading the council that the trust could fix cracked paving stones quicker and cheaper by using a local tradesman. “Took five years,” he says. “Our guy makes a living laying driveways … You want to see how many flags we can lay for five grand compared with the council – by the time they’ve been out for three quotes and done all their usual stuff, they’ve spent five grand.” |
| Councillors in traditionally leftwing Salford couldn’t figure him out. Though he keeps his voting preferences secret, he would goad them and say: “I’m a bigger socialist than you are. I just believe in making the pie bigger before I share it out. That’s capitalism working well with socialist principles.” | Councillors in traditionally leftwing Salford couldn’t figure him out. Though he keeps his voting preferences secret, he would goad them and say: “I’m a bigger socialist than you are. I just believe in making the pie bigger before I share it out. That’s capitalism working well with socialist principles.” |
| Jones says he has come to the view that Irlam and Cadishead are “very lucky” to have a philanthropist such as McArthur in the district. “He could be like Richard Branson and spend half the year on a tropical island, but he chose to stay here.” | Jones says he has come to the view that Irlam and Cadishead are “very lucky” to have a philanthropist such as McArthur in the district. “He could be like Richard Branson and spend half the year on a tropical island, but he chose to stay here.” |
| Since 2016, Salford’s mayor has been Paul Dennett, a socialist and friend of Jeremy Corbyn who lives in a council flat and believes everyone should have the right to do the same. He takes a pragmatic view of McArthur and the trust. “For me, it’s a great model for delivering in a climate of austerity, where our budgets have been cut by 50%,” he says. Far better than building via the dreaded private finance initiative, which has seen councils saddled with massive long-term debt. “I’m not suspicious of him at all,” Dennett says, “in that we are not committing ourselves to capital finance repayments.” | Since 2016, Salford’s mayor has been Paul Dennett, a socialist and friend of Jeremy Corbyn who lives in a council flat and believes everyone should have the right to do the same. He takes a pragmatic view of McArthur and the trust. “For me, it’s a great model for delivering in a climate of austerity, where our budgets have been cut by 50%,” he says. Far better than building via the dreaded private finance initiative, which has seen councils saddled with massive long-term debt. “I’m not suspicious of him at all,” Dennett says, “in that we are not committing ourselves to capital finance repayments.” |
| What lessons can be learned from McArthur’s largesse? A report commissioned by New Economy, a thinktank funded by the Greater Manchester combined authority, noted that total employment had increased in Irlam and Cadishead since McArthur began his interventions. There has been a faster than expected fall in the number of people with no qualifications, too. Yet “replicating the model will not be without challenges”, wrote the authors. | What lessons can be learned from McArthur’s largesse? A report commissioned by New Economy, a thinktank funded by the Greater Manchester combined authority, noted that total employment had increased in Irlam and Cadishead since McArthur began his interventions. There has been a faster than expected fall in the number of people with no qualifications, too. Yet “replicating the model will not be without challenges”, wrote the authors. |
| But there are a lot of very wealthy people all over the region, insists McArthur. They just don’t get asked to chip in. “I can’t understand why Andy Burnham [Greater Manchester’s mayor] doesn’t get us all in a room and ask us to help,” says McArthur. Wealthy people should give more, he believes – of their time and expertise as well as their money. “It should be an expectation, shouldn’t it?” | But there are a lot of very wealthy people all over the region, insists McArthur. They just don’t get asked to chip in. “I can’t understand why Andy Burnham [Greater Manchester’s mayor] doesn’t get us all in a room and ask us to help,” says McArthur. Wealthy people should give more, he believes – of their time and expertise as well as their money. “It should be an expectation, shouldn’t it?” |
| • Helen Pidd is the Guardian’s north of England editor based in Manchester. Aditya Chakrabortty is away | • Helen Pidd is the Guardian’s north of England editor based in Manchester. Aditya Chakrabortty is away |
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