Extra funds could be raised for regeneration through a tax scheme proposed to the government.
Under the scheme – put together by Barking & Dagenham council in east London and business group London First – business rates collected by the Treasury and distributed to all councils could be kept within regeneration areas and used to shore up private sector investment through private finance initiatives.

A pilot project will see £480m of private sector investment put into regeneration initiatives. This will be paid for through additional business rates and the council tax collected from newly built offices and homes.

London First believes the mechanism could be the key to funding the infrastructure needed to support the development of the Thames Gateway and could promote economic development in disadvantaged communities.

Source

Housing Today