We are working to attract inward economic investment into Scotland’s towns, cities and communities that will deliver housing, improve public service delivery, economic benefits and contribute to Scotland’s net zero carbon target.
We lead on the Tax Incremental Financing (TIF) programme as a way of securing infrastructure investment that unlocks regeneration and inclusive economic growth.
TIF seeks to capture locally generated, incremental public sector revenues (e.g. business rates) that wouldn't have arisen were it not for investment in the delivery of “enabling” public sector infrastructure.
The use of TIF is normally predicated on a ‘but for’ test i.e. that but for TIF, the anticipated outcomes from a regeneration and economic perspective would not occur or not occur in the time frames which TIF would enable.
A TIF project must therefore demonstrate that the enabling infrastructure will generate additional public sector revenues to repay the financing requirements of the enabling infrastructure.
There are currently four TIF projects:
Two further TIF projects, one based in North Ayrshire and the other again in Fife, are currently being developed and are being taken forward to full Business Case for approval.