Finance secretary Derek Mackay has confirmed a £15 million investment to develop infrastructure in the country.

Applications by Fife and North Ayrshire Councils, through the Tax Incremental Financing scheme (TIF), have been approved and the councils are now set to work with the Scottish Futures Trust on more detailed businesses cases.

The Fife application for £10m TIF investment is for the Fife Interchange distribution and business park development that would help to develop 22 hectares of land and is expected to provide leverage for private sector investment of £75m to £100m.

The £5m TIF funding in North Ayrshire Council will be used to construct roads and services within the i3 Irvine, Innovation and Industry Park, with the potential to facilitate up to 26 sq m of industrial buildings. The TIF is expected to bring wider economic benefits of around 400 additional jobs, securing existing jobs and investment in the new region and promoting the life sciences hub in Irvine.

TIF enables councils to fund infrastructure by borrowing against future business rates that are generated as a result of attracting more businesses into the area.

Mr Mackay said: “This investment in Fife and North Ayrshire will redevelop and regenerate the local areas, making them attractive places to do business, which will unlock significant economic development and regeneration.

“The TIF scheme is just one part of this government’s innovative approach to investing in infrastructure. Boosting capital spending is key to economic growth, supporting jobs, apprenticeships and helping the Scottish economy.”

Tony Rose, infrastructure director at the Scottish Futures Trust, added: “TIF as a mechanism provides another lever for local authorities to enable and deliver inclusive growth and secure additional levels of private sector investment.

“These two new TIF projects demonstrate great ambition and we look forward to working with the two local authorities to bring their visions to life for the benefit of the local communities.”