TIF funding approved for Ravenscraig redevelopment
6 April 2011
North Lanarkshire Council’s plans to fund a £73million redevelopment at Ravenscraig using Tax Incremental Funding (TIF) have been formally approved by Finance Secretary John Swinney.
TIF will help to pay for the second phase of regeneration at Ravenscraig. Currently, new roads and infrastructure are being put in place to allow for the eventual creation of a new town centre. The site is home to Motherwell College and the Ravenscraig Regional Sports Facility.
It is thought the project could unlock around £425m in private investment and create up to 4,500 jobs.
Created the US, the concept of TIF is now being explored by Ministers in the UK as a new way of financing infrastructure projects. Scottish Futures Trust has developed TIF for use in Scotland. TIF schemes allow local authorities to use projected revenues from taxes to fund new infrastructure. Business rates from the resulting new developments are used to pay back the loans.
Dr Mark Robertson of Ryden has assisted North Lanarkshire Council in presenting a convincing business case.
He says: “We welcome the Scottish Government's approval of the TIF business case based upon our property market and economic analysis and advice to North Lanarkshire Council and look forward to Phase 2 of this major regeneration project being progressed over the coming years. It has become vital to find new ways to allow for development at this time of budget cuts in Scotland. ”
A business case for TIF funding was provisionally approved for the £84m upgrade to the Edinburgh waterfront last autumn. The Government has also now formally approved this scheme.
