Glasgow City Council’s £80m tax incremental financing (TIF) scheme for the Buchanan Quarter is expected to unlock £310mn in private investment. It has been provisionally approved by the Scottish Government.
Plans include upgrading the Royal Concert Hall, public realm and infrastructure improvement works in George Square and Buchanan Street, strengthening Cathedral Street bridge and improving access to Queen Street station.
One of the conditions of provisional approval is that Glasgow City Council will put in place an action plan to maximise benefits for other areas in the city not directly included in the Buchannan Quarter TIF project.
Under TIF, local authorities will fund infrastructure by borrowing against future business rate income that should be generated by the resulting regeneration and development.
The Scottish Futures Trust, set up by the Scottish government to improve value for money in public sector infrastructure, has spearheaded the development of the TIF model for use in Scotland.
Cabinet secretary for infrastructure and capital investment Alex Neil said: “This development will breathe new life into Glasgow underlining its position as one of Europe’s great, vibrant cities.
“Not only will the Buchanan Quarter project unlock hundreds of millions of pounds of private investment and create hundreds of new jobs, it will also bring people flocking into the city centre to enjoy the new facilities.
“Against a backdrop of limited public finances to assist regeneration, we want to encourage innovative funding models, such as TIF, to help lever in additional private sector investment.”
Barry White, chief executive of the Scottish Futures Trust (SFT), said: “Scotland continues to lead the way in the use of TIF to help attract additional investment. Such is the appeal of TIF that for every £1 of public sector money spent; potentially a further £5 can be invested by the private sector – which is crucial for future growth.”
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