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TIF: key to economic and social improvement
Published: 2009-09-22 09:06:21
"It’s time to get back to basics and remember that this is about generating economic and social outcomes in our major cities," Core Cities director Chris Murray told SocInvest. His concern is that while the all-important details of proposed tax increment financing (TIF) are being thrashed out with Government and Treasury groups, the real prize of stimulating the economic growth should not be forgotten.
Observing that many regeneration schemes have stalled in the recession, he said: "If we forward-fund infrastructure then developers will be more interested in funding development. Without TIF it is hard to see this happening in the present economic climate and this is a mechanism we should move to pilot.
"It’s a critical policy issue, if we are to avoid half-finished regeneration and an erosion of renaissance; the city growth and consolidation we have achieved is an opportunity to concentrate value and deliver recovery for the long term. Our competitors have these kinds of freedoms, which could leave us weakened in the global market place."
Core Cities has lobbied for the adoption of US-style tax increment financing in the UK in the form of accelerated development zones (ADZs). In common with TIF, ADZs are based on raising finance for infrastructure investment against the projected future rise in rate revenues that should flow from regeneration schemes.
Chris Murray is one of the speakers at "Preparing for Tax Increment Financing and Accelerated Development Zones," 15 October, London. For more information, click here.