Tax Increment Financing
Case reference FOI2024/00725
Published 17 May 2024
Request
I would like to request the following information regarding Tax Increment Financing (TIF) in your Council:
1) Is the Council currently making use of tax increment financing (retaining business rate increases above a set baseline, for a set period, in a designated area? For clarification, this practice is sometimes also known as 'business rate borrowing', although it does not have to involve borrowing.
2) If so,
a. Could you please provide a map of the designated area(s)?
b. Could you please provide a list of postcodes that fall within the designated area(s)?
c. Please provide a short description of the purpose of using TIF (e.g., for regeneration of the designated area). i. Has any investment taken place in relation to TIF? If so, could you please provide a short description of the type of investment, timelines, and amount invested?
d. When did the TIF mechanism come into effect, and for which period (e.g., in April 2013, for a period of 25 years).
e. Has the Council taken out any borrowing to be repaid through the retained business rates? If so, could you please state how much was borrowed, and who the lender was (e.g., £XX borrowed through bond issuance, £XX borrowed from the PWLB, etc.).
Response
I would like to request the following information regarding Tax Increment Financing (TIF) in your Council:
1) Is the Council currently making use of tax increment financing (retaining business rate increases above a set baseline, for a set period, in a designated area? For clarification, this practice is sometimes also known as 'business rate borrowing', although it does not have to involve borrowing.
A: The Hereford Enterprise Zone (HEZ) is currently shown as a designated area in terms of the collection of Retained Business Rates by Herefordshire Council. Any growth in this designated area above the baseline set by Central Government is retained. Herefordshire Council only has 1 designated area which is HEZ. Attached here is a link to the lastest annual rates return for 22/23.
National non-domestic rates collected by councils in England: 2022 to 2023 - GOV.UK (www.gov.uk)
2) If so,
a. Could you please provide a map of the designated area(s)?
A: A Map of Hereford Enterprise Zone designated area attached
b. Could you please provide a list of postcodes that fall within the designated area(s)?
A: HR2 6BQ
HR2 6EQ
HR2 6FE
HR2 6FG
HR2 6FJ
HR2 6FN
HR2 6FP
HR2 6FQ
HR2 6JF
HR2 6JH
HR2 6JL
HR2 6JR
HR2 6JS
HR2 6JW
HR2 6LA
HR2 6LB
HR2 6LD
HR2 6NX
HR2 6NY
HR2 6SQ
HR2 6SR
HR2 6ST
c. Please provide a short description of the purpose of using TIF (e.g., for regeneration of the designated area).
A: As part of the Government's national Enterprise Zone policy
i. Has any investment taken place in relation to TIF? If so, could you please provide a short description of the type of investment, timelines, and amount invested?
A: All income received through the council's Retained Rates Share is invested as part of the council's total cash investments pot. So no individual investments have made on the HEZ rates income.
d. When did the TIF mechanism come into effect, and for which period (e.g., in April 2013, for a period of 25 years).
A: 1 April 2013 for a period 25 years
e. Has the Council taken out any borrowing to be repaid through the retained business rates? If so, could you please state how much was borrowed, and who the lender was (e.g., £XX borrowed through bond issuance, £XX borrowed from the PWLB, etc.).
A: No
Documents
This is Herefordshire Council's response to a freedom of information (FOI) or environmental information regulations (EIR) request.
You can browse our other responses or make a new FOI request.