The Government has been urged to “get a move on” with the introduction of tax incremental funding schemes.

Birmingham City Council leader Mike Whitby warned that the launch of TIFs in 2013 was too far away and that the £70 million a year expected to flow from the initiative was desperately needed to boost the local economy.

The Greater Birmingham and Solihull Local Enterprise Partnership (LEP) expects TIF to raise £700 million over a 10-year period, helping to create 100,000 jobs.

The funding scheme works on the basis of the LEP being able to keep additional business rate income generated by new firms moving into Birmingham, using the money as an income stream to take out loans to pay for investment in infrastructure projects.

Coun Whitby told a fringe meeting at the Local Government Association conference that he feared the Treasury would attempt to stall the Government’s plans.

He added: “TIFs are a win-win situation for us, but the Treasury has suddenly realised it may lose a chunk of money.

“We need TIF like yesterday and the message has to go out to Ministers to get a move on.”

Birmingham City Council began discussing TIF with the last Labour government three years ago.

Coun Whitby added: “It has taken a long time, but the coalition Government is fully in favour of allowing this to happen. It’s a question of when.”

He sought to dismiss fears that Birmingham will swallow most of the TIF money.

“Money will be allocated across the LEP area, to Bromsgrove, East Staffordshire, Tamworth, Lichfield. And Solihull.

“This is a very sophisticated relationship based on councils and businesses working closely together.”