Croydon’s ambitious regeneration plans could be given a significant boost as the council bids for a build now pay later scheme.

The council has joined the race to pilot the government scheme designed to kick start regeneration projects based on an initiative in the United States.

Local government minister John Healey has invited local authorities to nominate big regeneration projects to go forward under the tax increment financing (TIF) model initiative.

Jon Rouse, Croydon Council chief executive, said: “Yes, we are interested. As a local authority expanding our rateable business can be beneficial.

“There are different models and we do not know what he [Mr Healey] means but we are interested enough to seriously to put in an expression of interest.”

TIF allows a local body to borrow cash for capital investment in a designated area and secure it against the increases in tax revenue expected to be generated by the development of the infra- structure.

The TIF model would allow councils to sell bonds to forward fund infrastructure. These would be repaid via an increase in business rates when the regeneration of an area was completed.

Mr Rouse conceded the scheme had inherent risk as you could not predict the revenues gained from future developments.

But he eased these fears by saying any TIF would be used for the infrastructure of projects such as roads and drainage.

Among the schemes the TIF could be used for include Menta’s development in Cherry Orchard Road.

Croydon Council will be up against a nuimber of other local authorities, with Swindon having expressed an interest for two of its regeneration projects.

Successful pilot schemes are expected to be announced in the pre budget report this autumn.

• What do you think? Let us know by email here, phone the newsdesk on 020 8330 9555 or leave a comment below.