Community Infra Bonds touted
25 July 2012
Community Infrastructure Bonds should be developed to bring private investment into infrastructure, a thinktank has claimed, as construction continues to pull down national growth figures.
The Respublica thinktank has suggested the bonds, which would be issued by a special purpose vehicle, could be underpinned by a variety of revenue streams, including those linked to land and property value.Under the plans, the vehicles would be social enterprises bringing together specific “communities of interest” from the public private and voluntary sectors, the report claimed.
The proposals were published as the Office for National Statistics revealed the UK economy contracted by 0.7% during the second quarter of 2012, with construction again dragging the figures down by reporting a 5.2% reduction – following a 4.9% fall in the first quarter.
“The levels of investment in infrastructure in the UK are woefully low, and it is clear that we need new models to address this,” said Respublica director Phillip Blond.
“Our proposal for a Community Infrastructure Bond can deliver not just a quick injection of funding for infrastructure development, but the will and the wherefore to make it all happen. It promises reliable returns and escapes the trap of short-termism, and creates more meaningful engagement.”
