Scottish Futures Trust ‘saves taxpayer £640m’

THE BODY TASKED with finding value for money in public sector building projects such as schools said it has saved the taxpayer £640 million in its first five years.

Sir Angus Grossart said SFT funding models had also been vital in progressing projects such as the £850 million redevelopment of Edinburghs St James Quarter. Picture: Neil Hanna

Scottish Futures Trust (SFT) said the savings include wider benefits such as the creation of jobs and cutting of carbon emissions.

The independent body said its work had resulted in the construction of £200 million of “innovatively financed” housing as well as 67 schools built for the price of 55 through the £1.25 billion Scotland’s Schools for the Future programme.

In addition, the trust said £160 million had been invested through the use of the tax incremental financing (TIF) scheme, which allows councils to fund infrastructure work by borrowing money against the cash they expect to raise in business rates when the projects are completed.

SFT said it had secured £4 billion of additional investment in the public sector over and above traditional capital budgets.

Chairman Sir Angus Grossart said the trust’s programmes had helped to speed up construction of the Aberdeen Western Peripheral Route, “thereby bringing forward £6 billion of additional local economic benefit that will result when the road is in use”.

He said SFT funding models had also been vital in progressing projects such as the £850 million redevelopment of Edinburgh’s St James Quarter.

Sir Angus said: “This is helping the council move quickly to invest £61 million into this vital area of the city and is unlocking further investment, with it recently being announced that the St James Centre owners TH Real Estate aim to tender £400 million of construction contracts.”

Edinburgh City Council chief executive Sue Bruce said: “The collective effort and commitment to breathe new life into the St James Centre were instrumental in creating this unique investment model in record time.

“Working in partnership with SFT, whose support and advice was crucial, along with the Scottish Government has enabled us to work with the main investor in developing this major site.

“The benefits to Edinburgh, and Scotland, in terms of employment, commercial and retail opportunities will be huge.”

SFT was set a financial target of achieving between £100 million and £150 million of savings and benefits each year when it was established by the Scottish Government.

The trust has set out plans to make a further £500 million to £750 million of savings over the next five years to 2019.

This includes developing new finance initiatives to boost the supply of affordable rented housing, planning a strategy for the roll-out of ultra-fast broadband and wireless infrastructure in Scotland, and continuing investment in low carbon projects, including quadrupling the amount spent on energy-efficient LED street lighting.