Where there are significant cuts to infrastructure budgets it is clear that attracting and securing long-term additional investment over and above traditional capital is important to bolster and stimulate economic growth.
SFT’s innovative work in attracting additional investment is predominantly channelled through four of its work streams – the Non-Profit Distributing (NPD) programme; the Tax Incremental Financing (TIF) initiative; the National Housing Trust (NHT) programme and more recently through the use of the Growth Accelerator.
The Scotland Act 2012 came into force on 1 April 2015 giving Scotland borrowing powers for capital expenditure. In November 2014, The Smith Commission recommended that the Scottish Government should be granted sufficient borrowing powers to support capital investment, and that consideration should be given to the merits of undertaking such action via a prudential borrowing regime. This increased flexibility would bring about new opportunities to effectively finance, deliver and manage Scottish infrastructure assets.
With these new powers, SFT will work with its public and private sector partners to explore the best funding and financing solutions for projects in pursuit of SFT’s overall objective of securing the best value for money across infrastructure investment in Scotland.
For further information, please contact SFT's deputy chief executive and director of investments, Peter Reekie [email protected]