Tax Increment Financing (TIF) schemes are all the rage in Scotland.

The funding mechanism allows private sector companies to borrow from the public sector for developments, guaranteed by future increased business rates. It is already being used for three projects in Scotland, but is yet to catch on elsewhere in the UK.

Phil Miller, chairman of the Scottish Property Federation, explains how existing borrowing powers in Scotland make TIFs easier.

Jeff Thornton, head of Scottish government services at Ernst & Young says there is always a risk with TIFs that the public sector pays for infrastructure without getting its money back.

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