Budget breakdown: Regional growth
Tax Incremental Finance
Government’s decision to commit an additional £150 million for Tax Increment Financing projects from 2013-14 is a welcome development. With some £200 billion needed to upgrade our infrastructure over the course of this parliament, it is essential that we get TIF schemes up and running quickly to help leverage this investment from the private sector. Further details on allocating the funding will be announced in the coming months.
Growing Places Fund
Government will increase the fund by £270m to help local communities and businesses lead development in their areas. This additional finance should help Local Enterprise Partnerships implement the growth strategies they have been devising over the past year.
Greater Manchester city deal
Government will help pilot a new ‘Earn Back’ model in Manchester to unlock £1.2bn of infrastructure investment across the city region. The Greater Manchester growth story is an example of what can be done with strong collaboration between the public sector and business and it has earned the increased autonomy it will gain through its city deal – proposals from other cities are currently being considered. We are currently looking at ways to maximise the growth potential of other parts of the UK, with cities playing a leading role, and will be publishing our ideas later in the summer.