The government has invited local authorities in England to apply to host new investment zones to “turbocharge economic growth” and level up the country.
The Department for Levelling Up, Housing and Communities (DLUHC) opened the bidding process for the zones on 2 October. Mayoral combined authorities, upper tier local authorities and freeports have until 14 October to express their interest.
Chancellor Kwasi Kwarteng introduced a plan for investment zones in his mini-budget on 23 September. The zones offer lower taxes and streamlined planning rules for specific sites, with the aim of boosting funding and development in both commercial and residential projects.
So far, the government has had discussions with 38 local authorities about proposals for defined areas that could become investment zones.
Investment zones are part of DLUHC’s wider levelling up measures to drive long-term economic growth across England, create jobs, deliver new homes and spread opportunity.
The zones can offer tax incentives such as reliefs on business rates, stamp duty land tax and employer national insurance contributions. Zones are set to benefit from simplified planning rules, which include reviewing “ineffective” EU requirements, lengthy consultations with statutory bodies and national and local policy rules.
The government will also give greater control over local growth funding to authority leaders to ensure zones have the infrastructure and skilled workforce required.
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