Refocussed Investment Zones
Kwasi Karteng announced plans to reduce taxes and relax planning regulations in around 38 local authority areas in the mini-budget during Liz Truss’s leadership. Like much of that mini-budget, plans were reassessed and reversed. However, we were told in the Autumn Statement that a scaled back investment zone plan would be launched. During the 2023 Spring Budget Jeremy Hunt announced 12 refocussed investment zones in the UK to boost productivity and growth.
The areas identified as candidates to host a “potential Canary Wharf” are: West Midlands; Greater Manchester; the North East; South Yorkshire; West Yorkshire; East Midlands, Teeside and Liverpool. There will also be at least one investment zone in each of Scotland, Wales and Northern Ireland.
The zones align with the government’s five priority sectors – digital and tech, green industries, life sciences, advanced manufacturing and creative industries. Each zone will focus on at least one of these priority sectors, with the objective of boosting the UKs competitiveness in these high potential industries.
The investment zones are to benefit from a flexible tax relief and grant funding package worth up to £80 million over five years. In terms of planning, zones should have an ambitious offer so that development can be accelerated whilst maintaining environmental standards. Speed and quality is key, authorities should proactively masterplan and look at the use of Local Development Orders and other innovative routes to planning permission to deliver faster. In areas requiring significant development, particularly with complex land assembly, a development corporation might be appropriate.
It will be interesting to see how the areas unfold and what measures are utilised. It will be important for success that support does not fall away after the initial five -year term. There is mention of the possibility of business rate retention beyond a base level for a 25-year period which is positive and the proactive and streamlined planning regimes put in place should be long term to encourage ongoing growth.
Posted on 04/03/2023 by Ortolan
