The quango charged with the growth of Ashford in Kent is working on plans to establish the UK’s first financial institution to fund the development of local infrastructure.

The Ashford’s Future delivery agency, together with the local council, is drawing up proposals for the fund, which is designed to pay for the delivery of schools, roads and health facilities in the growth area.

Martin Bacon, the chief executive of Ashford’s Future, said the idea was to pump-prime the fund through a combination of central government growth area money and tariff payments from developers. He said: “We will then go to the banks to borrow the rest.”

Under the tariff, which is due to be launched in the next fortnight, developers will be expected to pay between £11,000 and £14,000 a unit.

The payments are expected to rise in line with the uplift in local property values caused by the infrastructure.

The level of the tariff, which will replace the section 106 agreements for all strategic developments in the town, was agreed

after talks between the council and land owners. Taylor Woodrow, the Church Commissioners and Berkeley Homes have greenfield land holdings in the town, which is expected to double in size.