The government must fast-track the introduction of tax increment financing (TIF) to fund new developments, according to the chief executive of Birmingham City Council.

Speaking yesterday at the Conservative Party conference in Birmingham, Stephen Hughes said his city should be picked as a pilot area for the scheme, which was announced by deputy prime minister Nick Clegg two weeks ago.

The programme would allow councils to fund infrastructure by borrowing against a predicted rise in business rates attached to the new developments.

Hughes urged the government to implement TIFs quickly with a number of pilot schemes.

He said a range of different models should be tested, and that TIFs should be introduced in the forthcoming Finance Bill, rather than the Localism Bill.

Hughes said there was “no time to delay”.

He said: “Scottish Government and Scottish Future’s Trust last week gave approval to Edinburgh City Council’s plan to borrow £84m through TIF to redevelop the Leith Docks

“Now we urge Government to retain the £120m pilot programme announced in the budget on 24 March, and use this money to permit a small number of TIF supported projects to start immediately.”

• Birmingham council hires Newcastle chief to replace Dutton
• Now is the wrong time for TIFs, says Bernstein
• Birmingham uses council land to raise £4.7m from HCA
• Birmingham approves shared services hub
• Birmingham to set up private rented housing vehicle