Six regions across the West of England are in the running to become so-called ‘Investment Zones’, chancellor Kwasi Kwarteng has announced.
The government is in discussions with 38 local authorities in England and has said the selected areas, which will benefit from tax relief, will drive growth and unlock housing across the UK.
The zones are designed to encourage investment and new economic activity, supporting growth and jobs. The regions in the South West on the long list include: Somerset County Council, Cornwall Council, Gloucestershire County Council, Plymouth City Council, Dorset Council, and the West of England Combined Authority area.
The chosen areas will benefit from liberalised planning rules, with designated development sites to release more land for housing and commercial development. The need for planning applications will be minimised, according to the government, and where planning applications remain necessary, they will be streamlined.
Businesses in designated areas in investment zones will also be granted 100% business rates relief on newly occupied and expanded premises. Local authorities hosting Investment Zones will receive 100% of the business rates growth above an agreed baseline in designated sites for 25 years.
Businesses will also receive full stamp duty land tax relief on land bought for commercial or residential development and a zero rate for Employer National Insurance contributions on new employee earnings up to £50,270 per year.
Councillor Bill Revans, leader of Somerset County Council, has welcomed the chancellor's announcement that the county’s Gravity site - a huge smart campus being developed just north of Bridgwater - could be included.
Cllr Revans said: “We need to see the detail of how a new Investment Zone will work, but I am very pleased that Somerset looks like it could be a pioneer for the concept.
“With our plans for the Gravity site, our support for renewables and Hinkley Point C coming on stream later in the decade, we can put Somerset at the heart of the new Green Energy revolution. We have also identified significant growth opportunities in our other major towns. There is a prize here to be seized - and we have our eyes on that prize.”
'Anything that reduces tax and planning burdens has got to be a good thing'
Stuart Elford, chief executive of Devon & Plymouth Chamber, said the announcement of an Investment Zone for Plymouth was "great news" and would encourage investment and growth in the city.
"Business confidence has been at a severe low, so anything that reduces tax and planning burdens has got to be a good thing," he said. "Alongside the Freeport and National Marine Park it seems Plymouth is finally getting the recognition from national government that it deserves and so desperately needs. While the full details are yet to be announced, on the face of it this is an exciting step forward for Plymouth.”
The government has said it will set out more details on the zones in "due course". Cllr Mark Hawthorne, leader of Gloucestershire County Council, said the local authority was "looking forward" to working with the government on the opportunity.
He said: “We’re delighted that Gloucestershire features in the government’s mini budget today regarding projects like the A417 and investment zones. We want to promote growth in Gloucestershire and this is just one of the ways we may be able to do this."
Dorset Chamber chief executive Ian Girling said it was "important" the county did not miss out on the levelling up plans. He added: "It is important that Dorset Council, the business community and other partners in the zone work closely together to ensure we maximise this opportunity to boost growth, create jobs and encourage new investment.
"The necessary infrastructure and support must be in place as part of any initiatives to ensure we see long-term economic benefits. There is no time to waste and I am sure Dorset businesses will be excited to find out more and potentially become involved.”
'A massive opportunity'
Richard Bingley, Plymouth City Council leader, said the fact Plymouth had been selected as a first wave of investment zones was "testament" to the administration's "laser-sharp focus" on higher-value job creation schemes.
"We've relentlessly lobbied government for more funding, more local freedoms, and for tax burdens across the piece to fall," he said.
"This proposed transformation also makes concrete our pledge to residents to remove outdated obstacles and to ensure that our beautiful natural environment is matched by an ambitious, dynamic and attractive urban environment."
He added: "This is a massive opportunity to increase household income, business creation and quality urban home building in our Ocean City.
"This announcement could catapult our ambitions to revive the city centre as well as enable much-needed housing to be built. We also know we have huge unrealised potential for high value jobs in our waterfront and ports."
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