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Barnet Financing Plan: an alternative approach to funding infrastructure Hester Fairgrieve Policy and Partnership Manager, London Borough of Barnet.

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Presentation on theme: "Barnet Financing Plan: an alternative approach to funding infrastructure Hester Fairgrieve Policy and Partnership Manager, London Borough of Barnet."— Presentation transcript:

1 Barnet Financing Plan: an alternative approach to funding infrastructure Hester Fairgrieve Policy and Partnership Manager, London Borough of Barnet

2 Presentation Contents The Wider Context The Local Context Building the Solution Delivering the Solution Next Steps

3 The Wider Context UK Policy developments: Lyons Review Housing Green Paper Sub-National Review of Economic Development and Regeneration Successful City Suburbs Project

4 The Local Context 63,000 people and 40,000 new H/hs over 20 yrs 11% increase in local economy Additional population will increase local residents output by £1.25 billion per annum Cricklewood, Brent Cross and West Hendon - 7,500 new homes, new commercial district, 22,000 jobs over next 20 yrs 4 large regen schemes: 3000 homes get replaced by Largely private sector funded - £1.5bn investment

5 The Issue Very little funding available to Barnet for infrastructure investment Barnet as a strong and attractive place to live and invest could be undermined: Transport system will be put under strain Healthcare system and schools will not be able to cope with extra demand Environment will suffer from unsustainable physical development Our proposed solution Barnet Bond

6 The Barnet Financing Plan: using a combination of locally generated revenue sources to raise (and repay) finance directly from either public or private sources

7 Key Infrastructure Requirements

8 Local Revenue Flows Revenue elementHypothecation approach 1.Stamp duty – Borough wideBased on projected values/completions. 1% band retained 2.Business rates – Borough wide3p of existing Borough wide take based upon rateable value 3.Business rates – Brent CrossRing fence 100% of the incremental business rates that could be generated from the major proposed expansion 4.Brent Cross lease renegotiationRing fencing of increased and lease receipts 5.Brent Cross car parking levy£1 per visit levy on visitors parking at Brent Cross 6.Council tax recovery1% of Council tax ring fenced

9 Indicative finance capacity Revenue elementProjected annual income (£m) Up front finance capacity Prudential Borrowing (£m) Up front finance capacity Project finance pricing (£m) 1.Stamp duty – Borough wide Business rates – Borough wide Business rates – Brent Cross Brent Cross renegotiation Brent Cross – car parking levy Council tax recovery

10 Delivery Structure

11 Where next? Concept launched on 11 Sep 2007 Discussions planned with CLG and Treasury to agree whether to proceed to stage two Inclusion in LAA

12 Questions or comments?


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