The Government is in ‘early discussions with nearly 40 places’ including Tees Valley and the West Midlands about creating new Investment Zones offering tax cuts for businesses, the chancellor has confirmed.
Kwasi Kwarteng revealed in in today’s fiscal statement that the Government’s Plans for Growth will include new investment zones to liberalise planning rules in specified agreed sites, ‘releasing land and accelerating development’.
The MJ understands that so far Government officials have reached out only to unitaries and shire county councils. Warwickshire is understood to have had an approach, as well as Norfolk and Oxfordshire as well.
Business rates on newly occupied premises will be abolished, said the chancellor. Businesses taking on employees in a tax site will pay ‘no national insurance whatsoever’ on the first £50,000 earned by each new hire, said the chancellor.
Mr Kwarteng said the Government would cut taxes for businesses in designated tax sites for 10 years, with accelerated tax reliefs for structures and buildings and 100% tax relief on qualifying investments in plant and machinery.
He also announced there would be ‘no stamp duty to pay whatsoever’ on purchases of land and buildings for commercial or new residential developments.
Mr Kwarteng added: ‘That is an unprecedented set of tax incentives for business to invest, to build, and to create jobs right across the country.
‘I can confirm to the House that we are in early discussions with nearly 40 places like Tees Valley, the West Midlands, Norfolk and the West of England to establish Investment Zones.
‘ And we will work with the devolved administrations and local partners to make sure that Scotland, Wales and Northern Ireland will also benefit if they are willing to do so. If we really want to level up we have to unleash the power of the private sector.’
