Freedom of information response
Tax Increment Financing (TIF)
I would like to request the following information regarding Tax Increment Financing (TIF) in your Council:
1) Is the Council currently making use of tax increment financing (retaining business rate increases above a set baseline, for a set period, in a designated area? For clarification, this practice is sometimes also known as ‘business rate borrowing’, although it does not have to involve borrowing.
2) If so:
a. Could you please provide a map of the designated area(s)?
b. Could you please provide a list of postcodes that fall within the designated area(s)?
c. Please provide a short description of the purpose of using TIF (e.g., for regeneration of the designated area).
i. Has any investment taken place in relation to TIF? If so, could you please provide a short description of the type of investment, timelines, and amount invested?
d. When did the TIF mechanism come into effect, and for which period (e.g., in April 2013, for a period of 25 years).
e. Has the Council taken out any borrowing to be repaid through the retained business rates? If so, could you please state how much was borrowed, and who the lender was (e.g., £XX borrowed through bond issuance, £XX borrowed from the PWLB, etc.).
I would like to request the following information regarding Tax Increment Financing (TIF) in your Council:
1) Is the Council currently making use of tax increment financing (retaining business rate increases above a set baseline, for a set period, in a designated area? For clarification, this practice is sometimes also known as ‘business rate borrowing’, although it does not have to involve borrowing.
2 of the Thames freeport tax sites fall within the councils area
2) If so,
a.Could you please provide a map of the designated area(s)? Further information on the tax sites is available on Gov.uk. Maps are available at GOV:UK Maps of Thames Freeport tax sites
b. Could you please provide a list of postcodes that fall within the designated area(s)?
A full list of postcodes is not yet available as much of the tax site is at this stage is undeveloped, however postcodes that have been assigned to date are as follows:
c. Please provide a short description of the purpose of using TIF (e.g., for regeneration of the designated area).
Taken from Thames Freeport website:
The Thames Freeport is a geographical area in the United Kingdom that has been designated as a Freeport tax site by the British government on December 15, 2021.
The Thames Freeport includes the ports of Tilbury and DP World London Gateway, as well as Ford’s Dagenham plant. The tax sites within Thames Freeport are recognised by law as areas where businesses can benefit from tax reliefs to bring investment, trade, and jobs to regenerate regions across the country that need it most. The Thames Freeport is expected to draw £4.5 billion of new investment and create 21,000 skilled jobs
i. Has any investment taken place in relation to TIF? If so, could you please provide a short description of the type of investment, timelines, and amount invested?
From this: Retained Business Rates have been used to fund the operation of the Freeport to date. No other investment has been approved yet.
To this: Retained Business Rates have been used to fund the delivery of the Freeport. No other investment has been made yet.
d. When did the TIF mechanism come into effect, and for which period (e.g., in April 2013, for a period of 25 years). The tax site came into effect in November 2021, 100% Business rates are retained above an agreed baseline for 25 years.
e Has the Council taken out any borrowing to be repaid through the retained business rates? If so, could you please state how much was borrowed, and who the lender was (e.g., £XX borrowed through bond issuance, £XX borrowed from the PWLB, etc.).
No