|
The Association for Consultancy and Engineering (ACE) is asking the Chancellor of the Exchequer, Alistair Darling, to consider various funding methods for infrastructure in his Budget of 24 March.
ACE has set out a range of options in its latest policy paper: Infrastructure Funding. The options include the use of Tax Increment Financing (TIF) and the re-introduction of regional stock exchanges. ACE has already suggested that the Government consider establishing infrastructure gilts and has supported the work done by Policy Exchange on a regulatory asset base.
Nelson Ogunshakin, ACE chief executive, said: “ACE has stated that the Chancellor must address the UK’s deficit by setting out a clear timetable for its reduction. Alongside that, ACE is arguing that continuing investing infrastructure is vital to economic growth and the move towards a low carbon economy.”
The paper also looks at current funding methods and provides suggestions on how to make them more effective.
Nelson Ogunshakin added: “While traditional government borrowing can sometimes be the best option, there are other ways to ensure funding goes to infrastructure. We have made our suggestions in this paper to stimulate debate and explore innovative methods of funding.”
-ENDS-
For press information please contact Simon Goldie on 020 7227 1892 or 07905 279328 – sgoldie@acenet.co.uk
Notes to editors
ACE recommendations
- The government should explore the use of Tax Increment Financing (TIF) and their potential in the UK;
- The government should consider regional stock exchanges;
- The government should examine the case for infrastructure/green bonds;
- The government should consider incentivising asset management firms if they invest in infrastructure by offering tax breaks; and
- The government should use supplementary business rates where appropriate;
- The continued use of PPPs, utilising experience from previous projects, on aspects such as contractual design and obligations;
- Initial Public Offerings (IPOs) and their utilisation;
- Government borrowing should not be ruled out as a potential form of investment, but should target projects that are appropriate to this level of funding.
To read the paper, please click on this link.
|