Deputy Prime Minister Nick Clegg announced in his key speech that Local Councils will get powers to borrow funds to pay for major infrastructure projects, based on the projected increase in income generated by the scheme.
ICE Director General, Tom Foulkes, said:
“Government estimates that £40-50bn per annum will need to be channeled into UK infrastructure so the need to unlock a multiplicity of funding sources to raise sufficient capital is becoming ever more pressing.
“The principle of ‘tax increment funding’ is to be welcomed – it rightly recognises infrastructure as a longer term driver of economic growth and could prove a success in the UK as it has in a number of US cities. But it is unclear at this stage just how closely the treasury will control the local authority’s ability to use the funds. The greatest beneficiaries may be areas that are already prosperous as the increase in business rates is more likely to materialise. Less prosperous areas will present a higher risk yet it is often these areas that are most in need of new infrastructure to boost the local economy and create new jobs. If we are to rebalance the economy, funds need to be available for schemes that can help regenerate the areas that need it most.”
For further information contact:
Kate Ison, ICE Media Manager, 0207 665 2104, Kate.ison@ice.org.uk
The Institution of Civil Engineers (ICE) is a leading source of professional expertise in transport, water supply and treatment, flood management, waste and energy. Established in 1818, it has over 80,000 members throughout the world including over 60,000 in the UK. ICE’s vision is the place civil engineering the heart of society, delivering sustainable development through knowledge, skills and professional expertise. The ICE has long worked with the government of the day to help it to achieve its objectives, and has worked with industry to ensure that construction and civil engineering remain major contributors to the UK economy and UK exports.