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Mini-Budget: Investment Zones

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

For more information, look on Gov.uk website here


Contains public sector information licensed under the Open Government Licence v3.0.

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