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Table 2 ‘New’ Funding Tools and Vehicles proposed by Core Cities/PwC

From: ‘The governance of local infrastructure funding and financing’

Tool/Vehicle Description
Business Rate Supplement A tool that will enable cities to levy an additional supplement on the national business rate within their area. Funds generated would be retained locally, and used to underpin borrowing and other forms of capital financing to generate additional infrastructure investment.
Community Infrastructure Levy A standard charge levied by local authorities on new development to ensure that developers contribute to the infrastructure improvements.
Recycled Infrastructure Funds Funds that invest (in whole or in part) in physical infrastructure, which in turn enables associated land to be released for development over time. Key infrastructure can be delivered early in the development process. A proportion of the value of the development land released is used to pay back the Fund for its initial investment.
Tax Increment Financing/Accelerated Development Zones Allows local authorities to capture incremental value in the form of tax revenue generated from new development. Cities need to retain long-term local tax revenues generated from development, such as business rates, allowing funds to be raised for investments through securitisation of those revenues.
  1. Source: Core Cities/PwC (2008) Unlocking Growth: Interim Findings on New Funding Mechanisms, a report by the Core Cities Group and PwC, Manchester, Core Cities/PwC