New borrowing powers for councils

Councils will be given new borrowing powers to fund key regeneration projects with the introduction of the Tax Increment Finance (TIF) programme.
By The Newsroom
Published 21st Oct 2010, 11:27 BST
Updated 21st Oct 2010, 11:28 BST

The new powers, which have been widely used in the US in recent years, allow local authorities to borrow against predicted growth in their locally raised business rates.

The cash could be used to fund local regeneration schemes such as new shopping centres, roads and major buildings.

Hide Ad
Hide Ad

Dan Hodge, head of office agency from property consultant GVA Grimley's Leeds office, said: "The Chancellor's commitment to delivering Tax Increment Financing (TIF) could benefit the Yorkshire market.

"A TIF scheme at the Aire Valley would be ideal, allowing the council to borrow funds against future additional uplift in business rates in order to fund key regeneration and infrastructure projects."

However, Alex Munro, head of commercial agency development at the Leeds office of Knight Frank, criticised the lack of detail in the announcement.

He said: "Surprisingly, TIFs didn't get more than a passing mention given their potential to enable real regeneration opportunities at a time when development finance is so scarce."

Related topics:Leeds