Investment zones: what do we know so far?

The government’s Growth Plan, published on 23 September, included several sweeping measures aimed at kick-starting growth within the economy. One of the eye-catching policies was the launch of a new series of ‘Investment Zones’, building off the Freeports scheme, that is well underway at various ports and trade routes across the nation.

A number of locations were mentioned in the recent Treasury Growth Plan, however it is our understanding that this is not a prescriptive list and that local authorities will be encouraged to take part in the Expression of Interest (EOI) process, which was launched at the beginning of October, with a submission deadline set for 14 October.

Detailing the scheme’s headline incentives, the government committed to:

• Reduce the tax burden in Investment Zones. This will give businesses the certainty they need to invest for the long-term and provide the opportunity to build on the success of the Freeports programme.
• Establish a bespoke approach to planning in Investment Zones. Streamline the current system, while ensuring developments are safe and sustainable, to enable developers to innovate and respond to the market better and deliver attractive, well-designed new communities. This bespoke approach for home and businesses will only apply within the geographic boundaries of Investment Zones.
• Consolidate the UK’s strengths in science, tech, and other industries by removing the barriers and bureaucracy that constrain innovation and investment.

While there are key similarities with Freeports policy, Investment Zones have a markedly greater focus on planning, with selected areas benefitting from streamlined planning rules to release more land for housing and commercial development.

The CBI is working closely with government officials on the policy in order to ensure the process is designed to align with strategic business opportunities, responsive to market demand and create the conditions to unlock private sector investment at pace and scale.  We are also pushing for the process to incorporate a requirement for deep engagement with the private sector in the development of Investment Zone proposals.

More details are available on the government website.

For more information, contact Mark Goldstone, Head of Regional Policy or Jake Morris, Regional Policy Adviser.