Government favours new ways of funding projects – a new
model for 2016
The Government has an ever-expanding list of projects that are
acknowledged by all as "essential",
"important", and "nation building". This will
continue into 2016 and beyond and, as it does, the reality is that
central funds (Treasury) will not be sufficient to pay for
everything, and so projects need to be prioritised. One way that
this is going to be addressed in 2016 and beyond will be exploring
new ways of project funding including social investment bonds and
Taxation Incentive Funding (this has also been called "value
capture").
This model of funding effectively looks at all of the direct and
indirect benefits that a project may bring to an area, and
identifies ways in which these benefits can be identified,
captured, valued and returned to the project, such that this value
can be used to pay down some, or all, of the initial capital cost
of that project.
