Tax increment financing - Commons Library Standard Note

Published 19 February 2013 | Standard notes SN05797

Authors: Mark Sandford

Topic: Local government

Deputy Prime Minister Nick Clegg announced on 20 September 2010 that the Coalition Government would allow local authorities to use tax increment financing (TIF) in order to finance infrastructure projects. This would be implemented by the Local Government Finance Bill 2010-12, which is currently awaiting report stage in the House of Commons.

TIF has been used in the United States for approximately forty years and has generally been seen as a success. It is also being developed in Scotland. This note discusses the thinking behind TIF and considers recent developments.

Share this page

Related information

The House of Commons Library provides research, analysis and information services for MPs and their staff.

If you have any comments on briefings from the Commons Library, please contact

Please note, authors are not available to discuss the contents of papers with members of the general public. 

TwitterFollow House of Commons Library on Twitter

The House of Lords Library delivers research and information services to Members and staff of the House in support of parliamentary business.

Email with comments on Lords Library Notes.

Please note that authors are not available to discuss the contents of Library Notes with members of the general public.

POST produces independent, balanced and accessible briefings on public policy issues related to science and technology. You can leave feedback at