Transport: Taxation
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of extending tax increment financing mechanisms to support the delivery of major transport infrastructure projects.
Answered by Lucy Rigby
The government is committed to delivering strong, secure and sustainable growth to lift living standards in every community, town and city region, backing local leaders as the best people to deliver growth in their area. This includes improving the Business Rates Retention System to more consistently support MSAs in driving growth.
For instance, at Budget 2025, the government announced the Leeds City Fund, a business rates retention zone which will allow Leeds City Council to retain 100% of business rates growth above an agreed baseline within a designated area for 25 years. This will give Leeds a reliable income stream that can be borrowed against to fund major growth-driving investments in the city and maximise the benefits of planned investment in projects such as West Yorkshire Mass Transit.
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