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Birmingham Post

Business

Tamlyn Jones

Chancellor set to unveil plans for new 'investment zones' to boost local economies

Kwasi Kwarteng Combined Authority

Almost forty areas are in the running to become new so-called 'investment zones' aimed at speeding up development and boosting local economies, Chancellor Kwasi Kwarteng is set to announce. The new Chancellor will outline his vision tomorrow morning for the country following the recent appointment of Liz Truss as Prime Minister and her new-look cabinet.

Included in his plans is the offer to 38 local and combined authorities in England to establish new investment zones aimed at getting those local economies growing (scroll down for full list).

The Government said each zone would offer generous, targeted and time-limited tax cuts for businesses, backing them to increase productivity and create new jobs which could encourage investment in new shopping centres, restaurants, apartments and offices.

Under the plans, these areas will also benefit from liberalised planning rules to release more land for housing and commercial development and reforms to increase the speed of delivering development. It will include changes to environmental regulation and streamlined local and national planning policies so the investment zones can bring forward more development.

Negotiations between councils and developers for each project over affordable housing contributions will be scrapped, the Government says, to be replaced with a set percentage of affordable homes while ensuring communities get the infrastructure they need.

The Government said it would work closely with areas to develop tailored proposals that support their ambitions and deliver benefits for local residents. Separately, it will work with devolved administrations and partners in Scotland, Wales and Northern Ireland for investment zones there as well.

The Chancellor is expected to say: "The time it takes to get consent for nationally significant projects is getting slower, not quicker, while our international competitors forge ahead. We have to end this. To support growth right across the country, we need to go further, with targeted action in local areas.

"We will liberalise planning rules in specified agreed sites, releasing land and accelerating development. And we will cut taxes, with businesses in designated sites enjoying the benefit of generous tax reliefs".

Other announcements expected in tomorrow's mini Budget include legislation to speed up the delivery of around 100 major infrastructure projects across the UK and measures to tackle high energy bills, drive down inflation and cut taxes.