Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 20
20
Deferred
Enable greater use of Tax Increment Financing to fund infrastructure in New Towns.
Recommendation
Whilst the Government’s plan to allow all mayors of strategic authorities to charge Mayoral CIL is a welcome step towards greater fiscal devolution, the Government must go further to support local leaders with revenue raising powers to deliver infrastructure and housing. In particular, the Government should enable greater use of Tax Increment Financing—a model which has delivered successfully in London—to fund infrastructure in cities and in New Towns. (Recommendation, Paragraph 103)
Government Response Summary
The government defers a full response on financing models, including Tax Increment Financing, to Spring 2026 as part of the New Towns Taskforce's report, but states they are exploring different financing models used previously and will give new powers to Mayoral Authorities to raise revenue.
Government Response
Deferred
HM Government
Deferred
59. A full Government response to the New Towns Taskforce’s report is planned for Spring 2026 which will contain more information on financing models. Each location will have differences in size, geography and infrastructure needs which will influence the financing models used. The Department is exploring different financing models used previously, such as in London, to determine the best approach. 60. The Government’s English Devolution and Community Empowerment Bill will give new powers to Mayoral Authorities to raise revenue to enable them to fulfil their strategic priorities. Government will continue to work with LAs to build their capacity for managing more complex financial instruments.