Boost for infrastructure
Funding for new roads and land.
A £15 million investment in the development of infrastructure is expected to unlock significant levels of private sector funding, Finance Secretary Derek Mackay has confirmed.
Applications by Fife and North Ayrshire Councils through the Tax Incremental Financing scheme (TIF), have been approved with the councils now set to work with the Scottish Futures Trust on more detailed businesses cases.
The Fife application for £10 million TIF investment in the Fife Interchange distribution and business park development will help to develop 22 hectares of land and is expected to provide leverage for private sector investment of £75 million to £100 million.
The £5 million TIF funding in North Ayrshire Council will be used to construct roads and services within the i3 Irvine, Innovation and Industry Park with the potential to facilitate up to 26 square meters of industrial buildings. The TIF is expected to bring wider economic benefits of around 400 additional jobs, securing existing jobs and investment in the new region and promoting the life sciences hub in Irvine.
TIF allows councils to fund infrastructure by borrowing against future business rates that are generated as a result of attracting more businesses into the area. The two new schemes were announced through the 2017-18 Draft Budget, and follow pilot schemes operating in Glasgow, Argyll and Bute, Falkirk and Fife. Around £30 million of public sector funding has so far been invested of the total £175 million. This overall investment is expected to generate £900 million of private sector investment over the lifetime of the projects.
Mr Mackay said:
“This investment in Fife and North Ayrshire will redevelop and regenerate the local areas, making them attractive places to do business, which will unlock significant economic development and regeneration.
“The TIF scheme is just one part of this Government’s innovative approach to investing in infrastructure. Boosting capital spending is key to economic growth, supporting jobs, apprenticeships and helping the Scottish economy.”
Tony Rose, Infrastructure Director at the Scottish Futures Trust, said:
“TIF as a mechanism provides another lever for local authorities to enable and deliver inclusive growth and secure additional levels of private sector investment. These two new TIF projects demonstrate great ambition and we look forward to working with the two local authorities to bring their visions to life for the benefit of the local communities.”
Background
More information on TIF can be found at:
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