FLAGSHIP plans to create investment zones are set to be kicked into long grass as the Treasury scrambles to plug a £40billion Budget black hole.
Government sources admit the radical proposals are costly and may be for the scrap heap.
Investment zones were the centrepiece of Liz Truss’s plans to boost growth
The next PM is expected to return to the drawing board on them.
The zones were the centrepiece of Liz Truss’s plans to boost growth.
Businesses were going to be lured to the areas with giant tax breaks and relaxed planning rules.
But No11 insiders admit they come with a hefty price tag.
One Whitehall source said: “They are expensive. I don’t expect them to be announced any time soon.”
“It will be one for the new PM to decide on. They may want to change them to save money.”
New chancellor Jeremy Hunt is scrambling to slash spending and put up taxes to plug the gaping black hole in the public finances.
He was expected to unveil his plans on Halloween.
But the Tory leadership race could end up delaying the all-important fiscal statement.
