During the 2023 Autumn Statement, Chancellor Jeremy Hunt made a significant announcement about investment zones that could impact numerous businesses across the UK.
The four new investment zones in Greater Manchester, West Midlands, East Midlands (England), and Wrexham and Flintshire (Wales) signify a concerted effort to bolster economic development and stimulate business growth alongside the previously announced investment zones across the UK.
Extending the investment horizon
One of the standout commitments made by the Chancellor is the extension of the investment programme from five to 10 years.
This extension effectively doubles the financial envelope from £80 million to £160 million.
This significant increase in available funds paves the way for more substantial investments and a more profound impact on the designated regions.
Greater Manchester
The Greater Manchester Investment Zone emerges as a standout player in this initiative.
With an estimated £1.1 billion in private investments anticipated, this region is set to become a thriving hub for advanced manufacturing and materials.
Collaborations with local partners further solidify the strategic focus on fostering innovation and growth.
West Midlands
In the West Midlands Investment Zone, which encompasses Birmingham, Wolverhampton, and Coventry, the potential for business growth is significant.
With plans to leverage £2 billion in investments, the region is poised to drive innovation and economic prosperity.
Private contributions of £70 million, along with an additional £5 million allocated to digital platforms, will fuel entrepreneurial ventures and technological advancements.
East Midlands
The East Midlands Investment Zone, with an allocation of £383 million, is poised to experience a notable economic revival.
Industry giants Rolls Royce and Laing O’Rourke have pledged substantial contributions, amounting to £9.3 million.
This financial injection will play a pivotal role in driving growth and development in the Nottinghamshire and Derbyshire regions.
Leaders and officials across the area have voiced their enthusiasm and support for these initiatives.
Nottinghamshire County Council leader Ben Bradley (Conservative) has praised the scheme as “fantastic news” for his region, echoing the sentiments of many who are eagerly anticipating the positive transformation these investment zones promise.
How these investment zones benefit businesses
The creation of these investment zones holds immense potential for businesses.
Here’s a more detailed look at how businesses stand to benefit:
- Tax relief: Tax incentives are available for up to 600 hectares across a maximum of three sites, with a duration of five years. In cases where the full 600-hectare tax incentive is not utilised, there’s an option to exchange this for increased spending benefits. Furthermore, locations hosting investment zones may be eligible to retain 100 per cent of the growth in business rates on designated sites, above a predetermined baseline, for a period of 25 years. Additionally, these areas will receive support and guidance from central Government on key policies, including export support, planning, and infrastructure.
- Increased investment: The infusion of private and Government funds into these regions presents businesses with opportunities for expansion, research and development, and infrastructure improvement.
- Job creation: The Treasury’s estimates of 66,200 new jobs over the next decade signify increased employment opportunities, leading to economic stability and growth.
- Innovation hub: The focus on advanced manufacturing and technology within these zones encourages innovation and the development of cutting-edge products and services.
- Collaboration: Collaboration with local partners and industry leaders opens doors for networking and potential partnerships, fostering business growth.
- Long-term sustainability: The extension of the investment programme to 10 years ensures a sustained period of financial support, allowing businesses to plan for the future.
The unveiling of these investment zones marks a pivotal moment for businesses across the UK.
The increased funding, strategic focus, and regional collaborations present an unprecedented opportunity for growth and prosperity.
By tapping into these investment zones, businesses can position themselves for long-term success, innovation, and economic sustainability.
To find out how you could benefit from these new investment zones, please contact one of our team.
