1. Policy and Partnership Manager, London Borough of Barnet
Barnet Financing Plan: an alternative approach to funding infrastructure
Hester Fairgrieve
Policy and Partnership Manager, London Borough of Barnet

2. Presentation Contents
The Wider Context
The Local Context
Building the Solution
Delivering the Solution
Next Steps

3. The Wider Context UK Policy developments: Lyons Review
Housing Green Paper
Sub-National Review of Economic Development and Regeneration
Successful City Suburbs Project

4. The Local Context 63,000 people and 40,000 new H/hs over 20 yrs
11% increase in local economy
Additional population will increase local resident’s output by £1.25 billion per annum
Cricklewood, Brent Cross and West Hendon - 7,500 new homes, new commercial district, 22,000 jobs over next 20 yrs
4 large regen schemes: 3000 homes get replaced by Largely private sector funded - £1.5bn investment

5. Our proposed solution “Barnet Bond”
The Issue
Very little funding available to Barnet for infrastructure investment
Barnet as a strong and attractive place to live and invest could be undermined:
Transport system will be put under strain
Healthcare system and schools will not be able to cope with extra demand
Environment will suffer from unsustainable physical development
Our proposed solution “Barnet Bond”

6. The Barnet Financing Plan: using a combination of locally generated revenue sources to raise (and repay) finance directly from either public or private sources

7. Key Infrastructure Requirements

8. Hypothecation approach
Local Revenue Flows
Revenue element
Hypothecation approach 1.
Stamp duty – Borough wide
Based on projected values/completions. 1% band retained 2.
Business rates – Borough wide
3p of existing Borough wide take based upon rateable value 3.
Business rates – Brent Cross
Ring fence 100% of the incremental business rates that could be generated from the major proposed expansion 4.
Brent Cross lease renegotiation
Ring fencing of increased and lease receipts 5.
Brent Cross car parking levy
£1 per visit levy on visitors parking at Brent Cross 6.
Council tax recovery
1% of Council tax ring fenced

9. Indicative finance capacity
Revenue element
Projected annual income (£m)
Up front finance capacity
Prudential Borrowing (£m)
Project finance pricing (£m) 1.
Stamp duty – Borough wide 5 62 28 2.
Business rates – Borough wide 6 72 32 3.
Business rates – Brent Cross 9
104 46 4.
Brent Cross renegotiation 3 36 16 5.
Brent Cross – car parking levy 71 6.
Council tax recovery 2 17 8 31
362
162

10. Delivery Structure

11. Where next? Concept launched on 11 Sep 2007
Discussions planned with CLG and Treasury to agree whether to proceed to stage two
Inclusion in LAA

12. Questions or comments?