ACE asks the Chancellor to consider various funding methods

The Association for Consultancy and Engineering (ACE) is asking the Chancellor of the Exchequer, Alistair Darling, to consider various funding methods for infrastructure in his Budget of 24 March.

ACE has set out a range of options in its latest policy paper: Infrastructure Funding. The options include the use of Tax Increment Financing (TIF) and the re-introduction of regional stock exchanges. ACE has already suggested that the Government consider establishing infrastructure gilts and has supported the work done by Policy Exchange on a regulatory asset base.

Nelson Ogunshakin, ACE chief executive, said: “ACE has stated that the Chancellor must address the UK’s deficit by setting out a clear timetable for its reduction. Alongside that, ACE is arguing that continuing investing infrastructure is vital to economic growth and the move towards a low carbon economy.”

The paper also looks at current funding methods and provides suggestions on how to make them more effective.

Nelson Ogunshakin added: “While traditional government borrowing can sometimes be the best option, there are other ways to ensure funding goes to infrastructure. We have made our suggestions in this paper to stimulate debate and explore innovative methods of funding.”