Scotland's Economy
Falkirk Council’s £67 million Tax Incremental Financing (TIF) scheme
August 5, 2013 by Rhona Geisler 1 Comment | Category Uncategorized
Today, we celebrate the launch of one of the country’s most significant projects to support economic growth and job creation.
The Falkirk area, which is already a major contributor to the Scottish economy, has been awarded £67m from the Scottish Government through the Tax Incremental Finance scheme. This has given the green light for Falkirk Council to kick start a multi-million pound infrastructure project to attract more inward investment from the key sectors that will stimulate growth.
The TIF initiative is an innovative project and the Falkirk TIF was brought forward by Falkirk Council, in partnership with the Scottish Government and Scottish Futures Trust. The Council is amongst the first in the UK to proceed with such a venture.
The TIF investment anticipates levering a total of £176m in infrastructure expenditure. This is anticipated to attract investment of over £400m and the completion of c400,000sqm of business space. If secured at the level anticipated, the initiative has the potential to create almost 6,000 jobs.
Ambitions for The Falkirk area tap into its strengths. It is home to Scotland’s only major oil refinery, the base of the nation’s chemical sciences industry, and Scotland’s second largest export industry, generating £3.7bn annually. The area has the potential to stimulate significant new growth and investment. A growing population, 60% of Scotland’s population within a 60 minute journey, a central location between Glasgow and Edinburgh at the heart of Scotland’s communication networks, resources of land, talent and abilities of its people and key strengths in manufacturing, chemicals and logistics are all key to its future success.
Through the TIF mechanism the Council will borrow from the Public Works Loan Board to supply and improve infrastructure to help promote development in specific locations. These locations have been ‘red-lined’, releasing additional non-domestic rates income generated from the developments to the Council in order to repay the infrastructure funding.
An integrated infrastructure and development plan has been developed which aims to attract in excess of £400m of investment and the completion of 400,000sq m of business space over the duration of the TIF programme.
The TIF programme seeks to deliver:
• Investment in the local and national road network
• Investment in Grangemouth’s flood protection scheme
• Targeted site specific infrastructure investment
• Unlocked and accelerating development activity
The key infrastructure sites are:
• M9 Junction 6 Earlsgate Upgrade
• M9 Junction 5 Cadgers Brae Upgrade
• Icehouse Brae Upgrade
• A904 Westfield Roundabout to West Mains Improvements
• A801 Avon Gorge Upgrade
• Grangemouth Flood Protection
• Development Site Enabling Works
There’s been a huge amount of support from other parties who recognise the significance of the Falkirk TIF. Those involved in guiding the project include Scottish Enterprise, Chemical Sciences Scotland, the Falkirk Business Panel, Forth Ports, INEOS, CalaChem, Scottish Canals, private sector land owners and developers. These stakeholders are keen to participate in the implementation and delivery of the project to realise the full potential of the area.
Rhona Geisler – Director of Development Services, Falkirk Council
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Dear Sir/Madam,
I am writing regarding the TIF and its investment in the local and National road network.
I am surprised that with the recent opening of Forth Valley Royal Hospital on the outskirts of Larbert and the construction of slip roads onto the M876 the east side of the A9 at Glenbervie, that there was no improvement to Junction 8 where the M876 meets the M9 at Kersebrock/Kinnaird.
The lack of a connection for traffic travelling southbound along the M9 onto the M876 does mean that any ambulance heading to the new hospital from north of Junction 9 of the M9 by Bannockburn House have to travel through Plean along the A9 which would be far longer and a rougher journey than via Motorway between the aforementioned junctions on the M9 and M876 thus possibly saving lives.
The provision of an improved Junction 8 of the M9/M876 interchange would also improve access for private and business’s vehicles to and from Bonnybridge and the Larbert/Stenhousemuir areas to and from Stirling.