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Luton's tax increment financing

  • A £77m TIF scheme has been proposed by Luton Borough Council and CBRE.
  • The proposed scheme at Century Park is adjacent to Luton airport and involves a new road, improvements to junction 10A on the M1 motorway and access improvements to the north of the Luton Parkway railway station.
  • The development has been stalled since being zoned for employment 30 years ago and has been bought three times, in 1989, 1999 and 2009, most recently by ProLogis.
  • Each developer has obtained planning permission for schemes - in some cases several variations, but each has failed due to the difficulty of access to the site.
  • CBRE head of government and infrastructure Sarah Whitney estimated that retaining 50 per cent of the incremental business rate revenue created by the improvements would provide £5.2m a year, enabling the development to be paid off over 25 to 30 years.
  • If 75 per cent of rates could be retained, producing £7.8m a year, repayment would be possible in less than 20 years.

 

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