Nottinghamshire and Derbyshire are among 12 UK regions being given the chance to create a regional “Canary Wharf” to supercharge growth in the technology and low carbon sectors.
Linked to the region’s universities the “refocused” investment zone programme announced in the 2023 Budget hopes to create a dozen growth clusters, helped by £80 million of support and tax reliefs over five years – 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 UK’s 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 – with the ultimate aim to bring investment into areas which have underperformed economically.
Chancellor Jeremy Hunt said: “Canary Wharf and the Liverpool Docks were two outstanding regeneration projects.
“I pay tribute to Lord Heseltine for making them happen because they transformed the lives of thousands of people. They showed what’s possible when entrepreneurs, government and local communities come together.
“So today I announce that we will deliver 12 new Investment Zones, 12 potential Canary Wharfs.
“To 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.
“If the application is successful, they will have access to £80 million of support for a range of interventions including skills, infrastructure, tax reliefs and business rates retention.”
Welcoming the opportunity Derbyshire County Council leader Barry Lewis said: “We 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.”
Derby City Council leader Chris Poulter said: “Proposals for Investment Zones are very welcomed here in Derby – especially relevant given our area’s trailblazing status for advanced manufacturing and creativity, mentioned as one of the key areas – and we look forward to working with Government on developing this.”
Nottingham City Council leader Councillor David Mellen said: “Our region has often been an area of low Government funding, compared to many other areas of the UK, 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.”
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: “In this sense, support for SMEs is implied but not certainly not clear.”
