Government Adopts Adrian’s Plan for Infrastructure Funding

Torbay MP Adrian Sanders has hailed the decision of the Government to give councils the freedom to raise their own funding for improvement works.

The scheme, announced by Deputy Prime Minister Nick Clegg at this autumn’s Liberal Democrat Party Conference, will allow councils to raise their own funds through what is known as Tax Increment Financing.

Councils will be able to borrow against the future revenues they will gain from increased prosperity resulting from the investment and is a core part of the Government’s localism agenda.

Adrian had been pressuring the previous Government to introduce the scheme, Ministers sadly failed to go beyond simply discussing the idea.  In 2009 it was announced that Ministers were seriously considering the idea but when Adrian raised the question in the House of Commons in February this year, no progress had been made.

The new scheme will be introduced in more detail in a White Paper following this year’s spending review and will focus on allowing high value projects that benefit deprived urban areas such as Torbay to proceed.

Adrian said: “This is yet another example of the Government putting Liberal Democrat ideas into practice.  Labour talked about giving councils more power on financing for years, but never actually did anything.  We will now have a great opportunity for local people to decide what regeneration projects go ahead and how they are funded.”  

ENDS

Notes to editors:

1. Parliamentary question from February urging the adoption of tax increment financing: http://www.publications.parliament.uk/pa/cm200910/cmhansrd/cm100208/text/100208w0023.htm#10020846000414
2. Excerpt from Deputy Prime Minister Nick Clegg’s speech to Liberal Democrat conference, Monday 20^th September:

And I can announce today that we will be giving local authorities the freedom to borrow against those extra business rates to help pay for additional new developments. This may not make the pulses race, even at a Liberal Democrat conference. But I assure you it is the first step to breathing life back into our greatest cities.

Our leaders in Sheffield say it could allow the redevelopment of derelict mines in the Don Valley; our leaders in Newcastle believe this could help them create a new science park; in Leeds they argue the Aire Valley could be transformed. But whether in Newcastle, in Sheffield, in Leeds or indeed in every city in the UK. What matters most is that finally, they will be in the driving seat, instead of waiting for a handout from Whitehall. Local people, local power, local change.