Chancellor Kwasi Kwarteng will name Greater Manchester as one of 38 areas in line to get its own investment zone, in his mini-budget speech tomorrow (September 23) . The government hopes these new investment zones - specially chosen places where businesses will get tax cuts - will drive growth and the development of things like shopping centres, restaurants and office spaces.
The Chancellor is to promise what he has called a 'new era for Britain', a plan focusing on driving economic growth.
Dubbed 'The Growth Plan', the package will include 30 measures to tackle the rising energy bills, which has caused millions up and down the country to feel the crunch, and to also drive down inflation and cut taxes. The Government is expected to lower taxes and cut regulation in a bid to 'encourage business investment' 'create jobs' and 'improve living standards for everyone'.
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The plan, according to the Chancellor, will break the 'cycle of stagnation' in the UK, with economic growth falling behind in recent times, resulting in tax rises.
Speaking about his priorities in his speech to the House of Commons, Kwarteng is expected to say: “Growth is not as high as it needs to be, which has made it harder to pay for public services, requiring taxes to rise. This cycle of stagnation has led to the tax burden being forecast to reach the highest levels since the late 1940s.
“We are determined to break that cycle. We need a new approach for a new era focused on growth. That is how we will deliver higher wages, greater opportunities and sufficient revenue to fund our public services, now and into the future."
The government is in discussion with 38 local and mayoral combined authority areas in England, including the Greater Manchester Combined Authority, to set up new Investment Zones in specific sites within their area.
Under the new initiative, each Investment Zone will offer tax cuts for businesses, the government hopes this will lead to increased productivity and create new jobs. In turn, this move could encourage investment in new shopping centres, restaurants, apartments and offices.
It is also understood to include reforms to environmental regulation and local planning policies, for example removing height restrictions on development, so that Investment Zones can bring forward more development faster.
Negotiations between councils and developers for each project over affordable housing contributions are to be scrapped. This will be replaced with a set percentage of affordable homes.
The Chancellor will also set out a package of measures, including new legislation, to accelerate the delivery of around 100 major infrastructure projects across the country. The Growth Plan will also set out the infrastructure projects that the government will prioritise for acceleration, across transport, energy, and digital infrastructure.
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