£1.5bn Infrastructure Investment Announced

Up to £1.5bn of public and private investment could be achieved thanks to an innovative financial model, according to the Scottish Government.

The Tax Incremental Financing (TIF) scheme is already delivering millions of pounds worth of infrastructure projects across Scotland, and allows councils to fund the infrastructure by borrowing against future business rate income that should be generated by the resulting regeneration and development.

One of the projects under the initiative is Glasgow's Buchanan Quarter. The £80m development, which is under construction, aims to transform the city centre and will bring in around £310m in private investment and create up to 1,500 jobs. Work on the project includes improvements to George Square and Upper Dundas Street, while the Royal Concert Hall and Buchanan Street are being upgraded. Cathedral Street Bridge is also undergoing strengthening work and access to Queen Street station is to be enhanced.


Other projects include:

• Falkirk's £67m TIF scheme. This will unlock some £413m in private investment and includes improvement to the M9 motorway links and Grangemouth flood defences, creating almost 6,000 jobs.

• Argyll and Bute's £18.9m scheme. This will extend Oban North Pier and renewable energy projects. Construction is expected to commence in September and lever in £125m in private investment and create in excess of 1,000 jobs.

• North Lanarkshire's £73m Ravenscraig Phase 2 project. This bring in £425m from the private sector, and involves the development of the town centre, with retail, leisure, and community facilities.

Commenting on the scheme, Deputy First Minister Nicola Sturgeon said: "Physical enhancements to the Glasgow Royal Concert Hall will combine a flexible new accessible space for creative learning, performance and rehearsal, with digital capability which will connect performers from Stranraer to Shetland.

"In Glasgow, Falkirk, Argyll and Bute and North Lanarkshire the innovative TIF financing scheme will boost capital spending and support jobs and apprenticeships. The Scottish Government will use every lever at its disposal, such as TIF, within its devolved powers, to help boost the Scottish economy."

(JP)