Following the release of a significant cross-party report into the government’s approach to regeneration, the British Property Federation (BPF) has called for the rapid introduction of tax increment financing (TIF).
Having launchd the CLG select committee report earlier this week, Clive Betts MP, chair of the Communities and Local Government (CLG) Committee, said: ‘The government has cut public funding for regeneration programmes dramatically and has produced no adequate ‘strategy’ for regeneration sufficient to tackle the deep-seated problems faced by our most deprived communities.’
Due to the state of the economy, the country’s regeneration is virtually at a standstill, so the BPF has urged Government to consider innovative approaches to kick-start rejuvenation. BPF supports the report’s finding that TIF could ‘play a useful role’ in regeneration.
At present, the introduction of TIF will not take place until 2014 at the earliest, despite the Scottish government announcing a further three schemes this week – taking its total to seven. TIF raises upfront money by committing incremental business rates – i.e. revenues which would not have arisen but for the project going ahead – to be used to repay that initial investment
Liz Peace, chief executive of the British Property Federation, said: ‘With regeneration in most of the country non-existent a new model is required and we welcome many of the findings in this report.
‘Cutbacks in public spending mean the days of large injections of public money to get regeneration projects off the ground are over. This doesn’t mean regeneration has to grind to a halt though; TIF could unlock many stalled schemes where funding cannot be found from public or private, sources.
‘We’re also pleased to see the report support the creation of enterprise zones. While dependent on the government ensuring the correct package of incentives, they could be a powerful tool in encouraging regeneration in the 22 zones.’