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Today (28 September) the Scottish Property Federation strongly welcomed the announcement by the Cabinet Secretary John Swinney MSP, while addressing the Scottish Futures Trust second annual conference, that the Scottish Government would support a pilot tax increment financing (TIF) scheme to go ahead in Edinburgh.

David Melhuish, Director at SPF said: 

'In the current economic climate it is vital that we use every appropriate policy to promote jobs and the economy.  The City of Edinburgh Council, Forth Ports and the Scottish Futures Trust are to be congratulated on working together to find an innovative way to unlock the potential of the Leith Docks in Edinburgh, bringing new infrastructure, jobs and economic vitality to the area.  The Edinburgh TIF is the first of its kind in the UK and offers real trail-breaking policy innovation by both the Council, and the Cabinet Secretary.'

'We are delighted that the Scottish Government has said that it will consider a small number of potential TIF projects at this time as pilot proposals (of which Edinburgh is but one).  Today's announcement is therefore encouraging for other potential TIF project sites to bring forward viable business plans in the knowledge that there is political support for the concept of TIFs, where they are appropriate.'

The Scottish Government estimates the Edinburgh TIF will leverage in investment of some £660mn and create up to 4,900 jobs (see here for details).  In 2008 the British Property Federation produced a key document examining the pros and cons of TIFs, based on US experiences.  The analysis suggested that TIFs offer major opportunities to bring forward regeneration and renewal but should be considered carefully in each potential location.

Background note:

The Scottish Property Federation raised the possibility of introducing tax increment financing in submissions to and meetings with the Scottish Government from early 2008, and the SPF has consistently supported the use of TIFs where appropriate since this time. 

For further comments please contact David Melhuish on 0131 220 6353 or 07841 080989, or by email on dmelhuish@bpf.org.uk.