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The financialisation of urban development: Tax Increment Financing in Newcastle upon Tyne

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  • Tom Strickland

Abstract

In wake of the global economic crisis, there is a growing pressure on cities to engage in new entrepreneurial strategies for development. Financialised development mechanisms, such as Tax Increment Financing, could enable cities to re-ignite growth and stimulate development. This article highlights the opportunities of engaging in the process of financialisation, as well as the risky nature of financialised funding mechanisms. Using Newcastle upon Tyne as an example, it is argued that the opportunities and risks of adopting Tax Increment Financing vary geographically. The dilemma for policy makers – embrace a high-risk development strategy or become less competitive – is more apparent in underperforming and peripheral urban areas. In response to these geographically uneven tendencies, this article presents some policy recommendations for mitigating risk and maximising Tax Increment Financing's potential for successful urban development.

Suggested Citation

  • Tom Strickland, 2013. "The financialisation of urban development: Tax Increment Financing in Newcastle upon Tyne," Local Economy, London South Bank University, vol. 28(4), pages 384-398, June.
    • Handle: RePEc:sae:loceco:v:28:y:2013:i:4:p:384-398
    DOI: 10.1177/0269094213475857
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    References listed on IDEAS

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    1. Rachel Weber, 2010. "Selling City Futures: The Financialization of Urban Redevelopment Policy," Economic Geography, Clark University, vol. 86(3), pages 251-274, July.
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    4. Rachel Weber, 2010. "Selling City Futures: The Financialization of Urban Redevelopment Policy," Economic Geography, Taylor & Francis Journals, vol. 86(3), pages 251-274, July.
    5. Stuart Dawley & Neill Marshall & Andy Pike & Jane Pollard & John Tomaney, 2011. "The Labour Market Impact of the Run on Northern Rock: Continuity and Evolution in an old Industrial Region," Papers in Evolutionary Economic Geography (PEEG) 1109, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2011.
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