This paper addresses the issue of infrastructure funding in light of the current economic situation: recession and tightening of credit markets. Traditional ways of infrastructure investment need to be examined and new methods explored.
ACE suggests that:
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.