Economist | Tax-increment financing of local infrastructure

[slother]

Freedom at last - England’s big cities are getting a surprising taste of autonomy

The governance of Britain’s cities is quietly being transformed, in a process that may amount to something more radical than was boldly promised last year.

[johnb78]

Very interesting piece. Will be interesting to see how it translates into transport outcomes.

[Jon10]

There's a huge risk with TIF.

Devolution of real power from Westminster must be encouraged, but it must be backed up by the ability to raise new local taxes, as in many parts of the world.

TIF has been partly discredited in America, and could be seen as a cynical move by government to escape the central financing of infrastructure (given we have the lowest interest rates in 300 years).

Borrowing against future income is extremely risky for local government, but national government escapes the scandals of the future, if and when it all goes wrong.

[Engels]

All investment is a balance of risk and reward. Why shouldn't local authorities be allowed to take some risks with capital spending? The current situation is conservative and excessively risk averse.

As the article says Britain's cities boomed in an era where they made investments in infrastructure and they have struggled since a central state has denied them the ability to make decisions at an appropriate city region level. Looking at much of the rest of the developed world which has invested much better in city infrastructure over the last 30 years almost all have more decision making and funding agreed at a regional or subregional level - subsidiarity is the principal.

[Duh!]

The easy way to fund transport & other infrastructure read "Wheels of Fortune".