As part of his mini-Budget the Chancellor announced the intention to create investment zones throughout England.
Business in designated areas within the investment zones will benefit from:
These tax incentives will apply over a 10-year period.
The Government are in consultation with local authorities to agree the siting of the investment zones. The local authorities involved include Cumbria County Council, Greater Manchester Combined Authority; Lancashire County Council, North of Tyne Combined Authority, North Yorkshire County Council, Sunderland City Council; South Yorkshire Combined Authority, Tees Valley Combined Authority and West Yorkshire Combined Authority.
The Government intend to work with the devolved authorities in Scotland, Wales and Northern Ireland to create investment zones there too.
The intention of the investment zones tax offer is to encourage investment and new economic activity, supporting growth and jobs. However, an unintended consequence may be that businesses located outside of the newly created investment zones will simply relocate into the zone to access the tax benefits etc without providing growth.