More flexibility for Local Authorities under Tax Increment Funding Plans

As part of the Comprehensive spending review, Chancellor George Osborne has announced the introduction of Tax Increment Finance Powers. These will allow Local Authorities to fund key projects by borrowing against future increases in locally collected business rates.

In a speech to the Liberal Democrat conference last month in Liverpool, Deputy PM Nick Clegg said that Tax Increment Financing (TIF) would be introduced in England as part of measures for 'breathing life back into our greatest cities'.

The announcement is part of a wider set of reforms that will give more councils more flexibility over how they spend taxes and business rates.

Further information: HM Treasury