Government backs councils’ plans to raise £90m

Published on Wednesday 2 November 2011 00:00

THREE Scottish local authorities have been given the green light to raise funds for infrastructure projects designed to attract private sector investment and create thousands of jobs.

The Scottish Government yesterday approved the schemes, to be developed under the tax incremental financing (TIF) model which allows councils to borrow against the likely business rate gains that will result from an infrastructure project.

Falkirk Council will invest £52 million in a strategic road improvement, the Grangemouth flood defences and other works. .

Fife Council plans to put £17m into improved vehicle and marine access to Energy Park Fife and other work, while Argyll and Bute has a £20m proposal that includes extending Oban’s North Pier.

The three local authorities will now work with the Scottish Futures Trust to develop full TIF business cases.

The system is already being used in Edinburgh, where the council is investing £84m in the Leith Waterfront project, and in the £73m Ravenscraig phase two scheme in North Lanarkshire.

The Scottish Government says the projects could bring in up to £1.4 billion in private sector funding and create 17,000 jobs.

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