Birmingham’s Big Three urge ‘TIF’ action

BIRMINGHAM Chamber of Commerce Group has joined with Birmingham City Council and passenger transport body Centro to urge the government to use Tax Increment Financing (TIF) to fund infrastructure development in the city.

The united approach come as the three groups shared a platform at a fringe meeting at the Conservative Party Conference, which ended yesterday.

The three groups have called for Birmingham to become a pilot scheme to test out the efficiency of the TIF programme.

Jerry Blackett, chief executive of Birmingham Chamber of Commerce Group, said: “Tax Increment Financing will allow local councils to keep some of the extra business rates and council tax they raise to enable new developments to go ahead. Infrastructure development is vital to economic growth and finding a way to maintain crucial investment has never been more important.”
 
Stephen Hughes, chief executive of Birmingham City Council, added: “Following the earlier announcement that ‘councils will be able to keep some of the extra business rates and council tax they raise when they enable new developments to go ahead’, we now call on Government to take the next step and allow Birmingham to become the pilot for turning this ambition into reality.”

He said the alliance was urging the government to retain the £120m ADZ Pilot Programme announced in the Budget in March and use this money to permit a small number of TIF supported projects to start immediately.

Alex Burrows, head of strategy at Centro, said:  “This Conference has made clear that the government has two priorities: the economy and the low carbon agenda. Transport is a key enabler of both, driving sustainable economic growth and creating jobs.

“Tax increment financing of schemes like the Birmingham City Centre to Birmingham Airport Rapid Transit plan will deliver connectivity between the city centre, Birmingham Business Park and Chelmsley Wood.

“TIF will allow us to fund vital but expensive transport infrastructure now – allowing us to unlock and realise long-term benefits in terms of jobs, wealth, skills, education, health and social inclusion.”