New borrowing powers are to be introduced to enable authorities to carry out Tax Increment Financing (TIF).  The aim is to drive local investment and economic growth.

What does it mean?

• Regeneration projects require new roads, sewers, and other facilities to enable viable development to be carried out by the private sector.
• If the cost of this infrastructure is to be carried by a developer, it may well result in the whole scheme being unviable, therefore preventing regeneration and growth.
• Strict spending controls have reduced the availability of grants to fund this infrastructure.
• TIF will enable authorities to borrow against predicted growth in locally raised business rates generated as a result of the development.

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