Argyll & Bute Council’s £18.9m tax incremental financing (TIF) scheme is expected to lever in £125 million in private investment and also generate hundreds of construction jobs over the life of the project.
Under TIF, councils fund infrastructure by borrowing against future business rate income generated by the resulting regeneration and development.
The development of the TIF model has been led by the Scottish Futures Trust o deliver value for money across public sector infrastructure.
Argyll & Bute’s five-year plan includes extending Oban North Pier, upgrading road links to established industrial areas, renewable energy projects and creating new business space at Oban airport.
Deputy first minister Nicola Sturgeon said: “The Argyll & Bute TIF will allow major construction developments across the area over the next five years, which will unlock significant economic development and regeneration.
“It will allow Argyll & Bute to maintain and grow a number of industries and sectors that are important nationally such as renewable energy, aquaculture and marine tourism.
“We will continue to use every lever at our disposal, within our devolved powers, to boost capital spending and through innovative financing schemes such as TIF, support jobs, apprenticeships and help the Scottish economy.”
Scottish Futures Trust infrastructure director Tony Rose said: “SFT continues to lead the way with the development of TIF across Scotland as an innovative way to unlock future economic growth, as every £1 invested by the public sector has the potential to attract a further £6 from the private sector.
“We have worked closely with Argyll & Bute Council on finalising this agreement since recommending approval of its TIF business case and very much look forward to the positive impact that the investment will make to this region and adjacent areas.”
Got a story? Email news@theconstructionindex.co.uk
