A DOZEN pioneering high growth Investment Zones giving tax incentives for business are being set up across the UK.
Proposals to ‘supercharge’ areas with £80 million of funding over five years to improve skills and local infrastructure will be announced in the Budget.
A dozen pioneering high growth Investment Zones giving tax incentives for business are being set up across the UK
Jeremy Hunt plans to ‘unleash opportunity’ in budding industries as part of the government’s ‘levelling-up’ plans
Chancellor Jeremy Hunt plans to “unleash opportunity” in budding industries as part of the government’s ‘levelling-up’ plans.
The zones, clustered around universities or research institutions, will aid sectors such as technology, artificial intelligence and the creative sector with cash used to improve the planning system and business support.
Eight places in England including Greater Manchester and Tees Valley have been shortlisted to host the zones with the rest in the devolved administrations with plans in place by the end of the year.
Ministers want the zones to complement the existing ten freeport areas already established where areas benefit from different tax and customs incentives.
Mr Hunt, speaking ahead of tomorrow’s announcement, said: “True levelling up must be about local wealth creation and local decision-making to unblock obstacles to regeneration.
“From unleashing opportunity through new Investment Zones, to a new approach to accelerating R&D in city regions, we are delivering on our key priority to supercharge growth across the country”.
Ex-PM Liz Truss wanted to establish as many as two hundred low tax and low regulation areas to show off the government’s levelling-up agenda in a sign the overall scheme has been scaled back.
Hundreds of local authorities put in bids for the original zones but were later informed their plans would not come to light.
The Treasury will also provide more funding to help regenerate certain areas, following a trial in Grimsby, by bringing together town halls, MPs and civic leaders to build a ‘big picture’ of what is needed there.
A pot of £100 million will then be shared across Glasgow, the West Midlands and Greater Manchester to make them globally competitive centres for research and innovation in 26 R&D projects.
New health and medical technologies will be accelerated at the University of Birmingham and the Manchester Turing Innovation Hub will link business to high-tech AI research to boost productivity.
Cabinet Minister Michael Gove said: “Levelling up means backing local growth across the UK, driving innovation to attract investment and putting power into the hands of local communities so they can reach their full potential.
“Our new investment zones and Levelling Up Partnerships will deliver more jobs, better services and more opportunities for local people.”
Meanwhile, billions of pounds of taxpayers’ money will be given to regional mayors in the West Midlands and Greater Manchester giving them full control over spending in areas such as education and transport.
