5.30 Attracting private investment in national infrastructure is important but the Government is equally committed to supporting private sector investment in local infrastructure and wider economic development. This involves promoting delivery of the key infrastructure needed to unlock private developments, helping to generate the jobs and homes communities need.
5.31 To do this, the Government has announced the £500 million Growing Places Fund which has three overriding objectives:
• to generate economic activity in the short term by addressing immediate infrastructure and site constraints and promote the delivery of jobs and housing;
• to allow Local Enterprise Partnerships to prioritise the infrastructure they need, empowering them to deliver their economic strategies;
• to establish sustainable revolving funds that can be recouped and reinvested to unlock further development and leverage private investment.
5.32 All £500 million will be allocated from the end of January 2012. The funding will be paid out in this financial year to Local Enterprise Partnerships around the country that are committed to generating economic activity in the short term by addressing immediate infrastructure issues.
5.33 The Growing Places fund is complemented by the £1.4 billion Regional Growth Fund. This was launched with the Local Growth White Paper in October 2010.2 It supports projects and programmes with significant potential for economic growth and creation of additional private sector employment. Successful bids in the second round of the Regional Growth Fund include a range of infrastructure projects which unlock private sector investment and unblock economic development at specific sites across regions. The 2011 Autumn Statement announces an additional £1 billion for the Regional Growth Fund in England.
5.34 The Government has announced its support for the extension of the Northern Line to Battersea and will consider allowing local borrowing against future receipts of Community Infrastructure Levy (CIL) to facilitate this, subject to agreement from potential developers to contribute and develop the site. As part of its commitment to unlock Tax Increment Financing, the Government will also consider allowing city mayors to borrow against future CIL receipts where this can make a significant contribution to national infrastructure and subject to developer contributions.
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2 http://www.bis.gov.uk/policies/economic-development/local-growth-white-paper