Nottinghamshire and Derbyshire are among 12 海角视频 regions being given the chance to create a regional 鈥淐anary Wharf鈥 to supercharge growth in the technology and low carbon sectors.
Linked to the region鈥檚 universities the 鈥渞efocused鈥 investment zone programme announced in the 2023 Budget hopes to create a dozen growth clusters, helped by 拢80 million of support and tax reliefs over five years 鈥 including enhanced capital allowance rates, structures and buildings allowance, and relief from stamp duty land tax, business rates and employer national insurance contributions.
The tax breaks will be similar to those already agreed for the new East Midlands Freeport which takes in three geographical areas in Leicestershire, Derbyshire and Nottinghamshire.
The investment zone sites will be open to the 海角视频鈥檚 devolved Mayoral Combined Authorities including the East Midlands Mayoral Combined Authority, currently being planned by the councils in Nottingham, Nottinghamshire, Derby and Derbyshire.
Sectors that could take advantage include green industries, digital technologies, life sciences, creative industries and advanced manufacturing 鈥 with the ultimate aim to bring investment into areas which have underperformed economically.
Chancellor Jeremy Hunt said: 鈥淐anary Wharf and the Liverpool Docks were two outstanding regeneration projects.
鈥淚 pay tribute to Lord Heseltine for making them happen because they transformed the lives of thousands of people. They showed what鈥檚 possible when entrepreneurs, government and local communities come together.
鈥淪o today I announce that we will deliver 12 new Investment Zones, 12 potential Canary Wharfs.
鈥淭o be chosen, each area must identify a location where they can offer a bold and imaginative partnership between local government and a university or research institute in a way that catalyses new innovation clusters.
鈥淚f the application is successful, they will have access to 拢80 million of support for a range of interventions including skills, infrastructure, tax reliefs and business rates retention.鈥
Investment Zones could benefit from a range of tax incentives:
Specified sites in England could benefit from a range of time-limited tax incentives over 10 years. The tax incentives under consideration are:
1. Business Rates 鈥 100% relief from business rates on newly occupied business premises, and certain existing businesses where they expand in English Investment Zone tax sites. Councils hosting Investment Zones will receive 100% of the business rates growth in designated sites above an agreed baseline for 25 years.
2. Enhanced Capital Allowance 鈥 100% first year allowance for companies鈥 qualifying expenditure on plant and machinery assets for use in tax sites.
3. Enhanced Structures and Buildings Allowance 鈥 accelerated relief to allow businesses to reduce their taxable profits by 20% of the cost of qualifying non-residential investment per year, relieving 100% of their cost of investment over 5 years.
4. Employer National Insurance contributions relief 鈥 zero-rate Employer NICs on salaries of any new employee working in the tax site for at least 60% of their time, on earnings up to 拢50,270 per year, with Employer NICs being charged at the usual rate above this level.
5. Stamp Duty Land Tax鈥 a full SDLT relief for land and buildings bought for use or development for commercial purposes, and for purchases of land or buildings for residential developers.
Welcoming the opportunity Derbyshire County Council leader Barry Lewis said: 鈥淲e look forward to working with Government, our neighbouring combined authority colleagues, and partners including local district and borough councils, to help turn Investment Zone proposals into a reality for our region.鈥
Derby City Council leader Chris Poulter said: 鈥淧roposals for Investment Zones are very welcomed here in Derby 鈥 especially relevant given our area鈥檚 trailblazing status for advanced manufacturing and creativity, mentioned as one of the key areas 鈥 and we look forward to working with Government on developing this.鈥
Nottingham City Council leader Councillor David Mellen said: 鈥淥ur region has often been an area of low Government funding, compared to many other areas of the 海角视频, and so it is important that we continue to work with our neighbouring authorities to explore all opportunities to unlock the economic potential of our combined areas.鈥
Nicholas Smith, director and head of tax at East Midlands chartered accountants Duncan & Toplis, said further details on the individual zone plans would be critical in showing how they might benefit local businesses.
He said: 鈥淚n this sense, support for SMEs is implied but not certainly not clear.鈥
