New funding scheme aids £84m waterfront project

An £84 million waterfront redevelopment has been approved through a pioneering funding mechanism for the UK.

The Scottish Government backed the use of the new funding scheme, called tax incremental financing (TIF), which will see a cruise liner terminal, lock gates, esplanade and link road created in Edinburgh's waterfront.

The scheme, which has been used in the United States, will see the council borrow the initial amount and pay it back through income from future business rates.

The government says the project has the potential to unlock 660 million of private investment and create up to 4,900 jobs.

Finance secretary John Swinney said a business case for the scheme had been provisionally agreed yesterday at the Scottish Future's Trust (SFT) conference.

He said: "Westminster cuts to the Scottish budget have emphasised the importance of finding new funding models to deliver crucial infrastructure projects, such as the Edinburgh Waterfront, that can unlock further economic development, whilst ensuring maximum value for the public purse."

The SFT was set up by the SNP administration to help phase out costly PPP/PFI funding schemes in the building of schools and hospitals.