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BPF welcomes CLG committee report accusing ministers of having ‘no adequate strategy’ for dealing with regeneration

The British Property Federation (BPF) has called for the rapid introduction of tax increment financing (TIF) following the publication of an influential cross-party report into the government’s approach to regeneration, which warns it has “little confidence that the government has a clear strategy for addressing the country's regeneration needs.”

Launching the CLG select committee report today, 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.”
 

With regeneration in most of the country at a standstill as a result of the economic crisis, the BPF has urged government to consider innovative approaches to kick-starting regeneration, such as tax increment financing (TIF). The BPF supports the report’s finding that TIF could “play a useful role” and “we look forward to its implementation at the earliest opportunity”.

As things stand TIF will not be introduced until 2014 at the earliest, despite the Scottish government announcing a further three schemes this week, taking its total to seven. TIF allows more upfront money to be raised 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.”

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Patrick Clift, Media and Public Affairs Manager, on 07834 439 505 or at pclift@bpf.org.uk

Paul Sweeney, Media Officer, on 07841 732 194 or at psweeney@bpf.org.uk

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