News

2010-09-24 : TIF Schemes Given Green Light

At the Liberal Democrats Party Conference this week, Nick Clegg announced that councils in England would be able to raise funds against future business rates, using Tax Increment Financing (TIF).

These funds would enable councils to contribute to the local economy, as currently, collected business rates go straight to central government. With impending government cuts on the horizon, this extra financial freedom will be welcome to the councils.

The additional funding is to be used for local regeneration and development projects, such as improving roads in the area, and is seen as the first step to encouraging the local economy.

Managing the costs and risk of this borrowing will fall to the local authorities, but this has come under criticism after the substantial losses caused by the collapse of Icelandic banks.

It is hoped that the TIF schemes will become as successful as the ones that have been in place in America, since the 1970's. In spite of the success, caution must be taken by the local councils as some critics claim American TIF schemes have falsely inflated property prices, forcing some existing businesses to move on.

With the impending change to the Small Business Rate Relief drawing closer it is essential that property business rates are reviewed to ensure potential savings are not being missed. Contact us for a free review on 0800 883 0353 or email us at enquiries@ruddlemerz.co.uk.