A £15 million investment in the development of infrastructure is expected to unlock significant levels of private sector funding, Finance Secretary Derek Mackay has confirmed. Applications by Fife and North Ayrshire Councils through the Tax Incremental Financing scheme (TIF), have been approved with the councils now set to work with the Scottish Futures Trust on more detailed business cases.
The Fife application for £10 million TIF investment in the Fife Interchange distribution and business park development will help to develop 22 hectares of land and is expected to provide leverage for private sector investment of £75 million to £100 million.
The £5 million TIF funding in North Ayrshire Council will be used to construct roads and services within i3 Irvine, Innovation and Industry Park with the potential to facilitate up to 26 square metres of industrial buildings. The TIF is expected to bring wider economic benefits of around 400 additional jobs, securing existing jobs and investment in the new region and promoting the life sciences hub in Irvine.
TIF allows councils to fund infrastructure by borrowing against future business rates that are generated as a result of attracting more businesses into the area. The two new schemes were announced through the 2017-18 Draft Budget, and follow pilot schemes operating in Glasgow, Argyll and Bute, Falkirk and Fife. Around £30 million of public sector funding has so far been invested of the total £175 million. This overall investment is expected to generate £900 million of private sector investment over the lifetime of the projects.