Wednesday 17 July 2024
21.4 C

Nottinghamshire in the running to be an Investment Zone under Government’s Growth Plan

The Government says Investment Zones will drive growth and unlock housing across the UK by lowering taxes and liberalising planning frameworks to encourage rapid development and business investment.

A spokesperson for Nottinghamshire County Council said:

‘On Friday the Government announced that Nottinghamshire is one of the areas around the country in the running to be designated as a new Investment Zone, offering tax incentives to encourage growth and quicker planning processes.’

More about Investment Zones:

Where will they be?

We are in discussions with 38 local authorities to establish investment zones in England and intend to work closely with the devolved administrations and local partners to deliver this opportunity to drive local growth in Scotland, Wales and Northern Ireland.

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How will they work?

Areas hosting Investment Zones will benefit from:

  • Lower taxes – businesses in designated sites will benefit from time-limited tax benefits.
  • Accelerated development – there will be designated development sites to both release more land for housing and commercial development, and to support accelerated development. The need for planning applications will be minimised and where planning applications remain necessary, they will be radically streamlined. Development sites may be co-located with, or separate to, tax sites, depending on what makes most sense for the local economy.
  • Wider support for local growth – subject to demonstrating readiness, Mayoral Combined Authorities hosting Investment Zones will receive a single local growth settlement in the next Spending Review period.

When will they be set up?

In England, the Government will deliver Investment Zones in partnership with Upper Tier Local Authorities and Mayoral Combined Authorities.

In Scotland, Wales and Northern Ireland, Investment Zones will be delivered in partnership with Devolved Administrations and local partners.

The Secretary of State for the Department for Levelling Up, Housing and Communities will shortly set out the selection criteria to become an Investment Zone, and the process for designating sites within it.

Who decides where they are?

We have written to local leaders in every part of England to invite them to begin discussions with government to agree Investment Zone(s) in that area. The areas announced today are the areas keen to be involved now, with more to come.

We intend to work with the devolved administrations and other local partners to deliver Investment Zones across all parts of the UK as quickly as possible.

How will they grow the economy?

The Investment Zones tax offer will be carefully designed to encourage investment and new economic activity, supporting growth and jobs.

In addition to the tax offer, planning flexibilities will remove a significant barrier to economic growth, and together tax and planning flexibilities will enable businesses to benefit from the positive effects of co-locating (also known as “agglomeration effects”).

The Freeports programme has already shown how targeted tax reliefs and support can bring together the public and private sector to begin to transform areas in need of levelling up.

What are the tax benefits?

Businesses in designated areas in investment zones will benefit from 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.

In addition businesses will 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.

To incentivise investment there will be a 100% first year enhanced capital allowance relief for plant and machinery used within designated sites and accelerated Enhanced Structures and Buildings Allowance relief of 20% per year.

When will you provide more detail on the planning changes?

We will set out further detail on the liberalised planning offer for Investment Zones in due course.

Where are the 38 local authorities?

  • Blackpool Council
  • Bedford Borough Council
  • Central Bedfordshire Council
  • Cheshire West and Chester Council
  • Cornwall Council
  • Cumbria County Council
  • Derbyshire County Council
  • Dorset Council
  • East Riding of Yorkshire Council
  • Essex County Council
  • Greater London Authority
  • Gloucestershire County Council
  • Greater Manchester Combined Authority
  • Hull City Council
  • Kent County Council
  • Lancashire County Council
  • Leicestershire County Council
  • Liverpool City Region
  • North East Lincolnshire Council
  • North Lincolnshire Council
  • Norfolk County Council
  • North of Tyne Combined Authority
  • North Yorkshire County Council
  • Nottinghamshire County Council
  • Plymouth City Council
  • Somerset County Council
  • Southampton City Council
  • Southend-on-Sea City Council
  • Staffordshire County Council
  • Stoke-on-Trent City Council
  • Suffolk County Council
  • Sunderland City Council
  • South Yorkshire Combined Authority
  • Tees Valley Combined Authority
  • Warwickshire County Council
  • West of England Combined Authority
  • West Midlands Combined Authority
  • West Yorkshire Combined Authority


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