By Bold government ‘Investment Zones’ to ‘drive local growth’ in North East Lincolnshire
Following the significant announcements by the Chancellor, Investment Zones showcased will ‘drive growth and unlock housing across the UK’ by lowering taxes and ‘liberalising’ planning frameworks, which the government hopes will encourage development and business investment.
The government has identified 38 local authorities to establish investment zones, which feature North Lincolnshire and North East Lincolnshire.
In the policy document, they hope to work with local administrations to ‘deliver this opportunity to drive local growth.
The document outlines the benefits of areas that are designated Investment Zones, which include lower taxes, accelerated development, and wider support for local growth.
The policy documents said 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.
The local authority will receive letters inviting them to begin discussions with the government regarding the Investment Zones.
The policy document says The Investment Zones tax offer will be ‘carefully designed to encourage investment and new economic activity, supporting growth and jobs.’
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.
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.
