On Friday 23rd September Chancellor Kwasi Kwarteng announced his Growth Plan, which will tackle energy costs to help reduce inflation, support businesses and help households. Here are the changes being made;
Infrastructure and investment zones
To help drive growth and housing across the UK, the government are collaborating with local authorities to establish investment zones.
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 sectors 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.
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
Contains public sector information licensed under the Open Government Licence v3.0.