As part of the government’s Growth Plan 2022 speech this morning, Kwasi Kwarteng said: “To support growth in this country, we need to go further, with targeted action in local areas. So today, I can announce the creation of new investment zones.”
Kwarteng said the government would “liberalise planning rules and specify agreed sites”, which would release land and accelerate development.
He added: “And Mr Speaker, we will cut taxes. For businesses in designated tax sites for 10 years, there will be accelerated tax reliefs for structures and buildings, and 100 per cent tax relief on qualifying investments in plants and machinery.
“On purchases of land and buildings for commercial or new residential developments, there will be no stamp duty to pay whatsoever.
“On newly occupied business premises, there will be no business rates to pay whatsoever. And if a business hires an employee in the tax site, then on the first £50,000 they earn, the employer will pay no national insurance whatsoever.”
‘Unprecedented tax incentives’
He described this as an “unprecedented set of tax incentives” for businesses to invest and create jobs.
Kwarteng said he was in “early discussions” with certain areas regarding the plans. He also said he would work with the devolved administrations in Scotland, Wales and Northern Ireland to make sure “they will also benefit”.
According to supporting documents, the need for planning applications will be minimised in these investment zones, and where necessary they will be “streamlined”.
Businesses will receive a 100 per cent relief on business rates on newly occupied and expanded premises. Firms will also not pay stamp duty on land bought for commercial or residential development.
Areas for investment zones
Some 38 areas are earmarked for the creation of these investment zones, and these are:
- Blackpool Council
- Bedford Borough Council
- Central Bedfordshire Council
- Cheshire West and Chester Council
- Cornwall Council
- Cumbria County Council
- Derbyshire County Council
- Dorset Council
- East Riding of Yorkshire Council
- Essex County Council
- Greater London Authority
- Gloucestershire County Council
- Greater Manchester Combined Authority
- Hull City Council
- Kent County Council
- Lancashire County Council
- Leicestershire County Council
- Liverpool City Region
- North East Lincolnshire Council
- North Lincolnshire Council
- Norfolk County Council
- North of Tyne Combined Authority
- North Yorkshire County Council
- Nottinghamshire County Council
- Plymouth City Council
- Somerset County Council
- Southampton City Council
- Southend-on-Sea City Council
- Staffordshire County Council
- Stoke-on-Trent City Council
- Suffolk County Council
- Sunderland City Council
- South Yorkshire Combined Authority
- Tees Valley Combined Authority
- Warwickshire County Council
- West of England Combined Authority
- West Midlands Combined Authority
- West Yorkshire Combined Authority