Chancellor of the Exchequer Jeremy Hunt has announced the UK Government will set up 12 ‘investment zones’ across the UK, in order to bolster UK business.
As part of today’s (22 November) Autumn Statement, Hunt told the House of Commons that tax relief for freeports and investment zones – initially laid out in the Spring Budget – is being extended to 10 years from five, thereby doubling the flexible funding envelope from £80m to £160m.
A further four investment zones will appear in the West and East Midlands, as well as in Greater Manchester, and in Wrexham and Flintshire. Figures from the Treasury purport that this will bring more than £3bn in private investment and create 65,000 new jobs.
In the West Midlands, the investment zone is expected to leverage £2bn in private investments; the East Midlands zone should bolster private investment by £383m; and the Greater Manchester zone is predicted to leverage £1.1bn in private investments over the next decade.
The measures come as part of the Chancellor’s 110 measures for growth of the UK economy and to “back British business”, which also include plans to boost foreign direct investment; provide £4.5bn to the auto, aerospace, life sciences and clean energy sectors; and bring forward proposed pension reforms.
