While major infrastructure such as nuclear power stations and windfarms may get a faster ride through the planning process courtesy of the newly established infrastructure planning commission (Guardian Public 21 December), projects such as the roads and bridges required to unlock major development sites may be getting a helping hand too.
Not only did Alistair Darling's pre-budget report promise to look into a new means of funding such projects but last week the Department for Business Innovation and Skills announced a review of the consents required for such schemes besides planning permission which throw up barriers to investment.
The independent review, which will be headed by Adrian Penfold, head of planning and environment at property company British Land, will look at consents that need to be obtained additionally to planning permission for such projects as bridges, tunnels, pipelines, roads and energy plant.
Penfold says that he is aiming at a consents regime that is "simple, equitable and transparent" and which will enable early decisions on investment.
In his pre budget report Alistair Darling announced that the government will "continue to examine the framework" for the implementation of tax increment financing, a mechanism that would enable a local authority to raise finance against future increases in business rates that will be unlocked by infrastructure improvement.
The announcement received a positive response. Liz Peace, chief executive of the British Property Federation (BPF) which represents major developers. She said that councils must be given the powers they need to raise funding and that if we are serious about kickstarting construction then action will be needed to support tax increment financing (TIFs) and ensure that "we do not stifle great opportunities to rebuild our towns".
But the government's commitment to TIFs is perceived as hesitant. Alistair Parker of property consultant Cushman & Wakefield said that the single sentence noting that the government would think a bit more about TIFs was "disappointing" in the light of expectations raised by minister John Healey in May when local authorities were invited to put forward candidates for TIF pilot schemes and the creation of so called "accelerated development zones".
The BPF points out that by the summer 82 areas had submitted bids for 124 projects indicating strong demand.
"After nine years of consideration and consultation one wonders what aspects of TIF the Treasury has yet to explore," Parker said.
The idea of TIFs, which are used in America, is that total revenue from business rates will be raised owing to new developments such as business parks and TIFs would enable the funding of infrastructure such as roads and bridges that are often a prerequisite for development.
Parker said he is also disappointed that the Treasury has apparently failed to understand what he describes as the "pay-as-you-go" TIF variant.
This would use private capital to find infrastructure without reliance on public revenue guarantees. Parker says that, crucially, this variant does not require the primary legislation that the government yesterday said that it will now consider.
From Flip Chart Fairy Tales
From Bubb's Blog
