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Desire for speedy action on Tax Increment Financing
Published: 2009-12-11 16:09:20
In its Pre-Budget Report, the Government has announced its intention to “continue to examine the framework needed to implement tax increment financing and consider the primary legislation that would be needed if schemes were to be introduced.”
Chris Murray, director, Core Cities, a prominent lobbiest for the case for implementing TIF principles in the form of Accelerated Development Zones, is looking for a speedy follow through.
"Whilst we welcome the news that our proposals have been included in the pre-budget report at this difficult financial time, we hope that Government will now move urgently to consult upon and initiate a pilot phase for TIF / ADZ.
"If we had not made a successful case, the proposals would not be in there, and we know there is strong interest within and beyond Government, but we would have liked to hear some further commitment to this in the pre-budget report. Access to this kind of funding model is needed now and there is a real appetite out there that we should capitalise upon. This is a model that can create more jobs, housing, economic recovery and growth."
Other industry figures have welcomed the Government's latest announcement.
"This is a good move for the industry," said Liz Peace, chief executive of the British Property Federation. According to Peter Cosmetatos, director of finance and investment, BPF, who chaired the SocInvest October masterclass on TIF, there are reasons to be encouraged. "We have heard some people express disappointment at the TIF announcement," he said. "But we do not share that feeling.
"The key development in recent weeks seems to have been a realisation that TIF needs primary legislation. That should not be a complete surprise, given how significant a change it represents to the way local government finance and infrastructure funding currently work.
"We are pleased that the Government continues to support TIF, and look forward to continuing to provide industry input into the work of officials as they move from examining whether TIF should be introduced to exploring how it could be implemented in the UK."