- The previous government announced that it will launch 13 Investment Zones across the UK with the stated aim of catalysing high-potential knowledge-intensive growth clusters. Eight Zones will be in England, two in Scotland, two in Wales and one in Northern Ireland.
- Each Investment Zone will benefit from a £160 million funding package over ten years (doubling from £80 million over 5 years as announced in November 2023), comprising flexible grant funding and optional tax incentives (which may include Stamp Duty Land Tax (SDLT) relief, business rates relief, enhanced capital allowances, enhanced structures and buildings allowances and employer NIC relief).
- The general area for each Zone has been announced and many Zones have now confirmed their sector focus and geographical sites. Three Zones have designated tax sites (Liverpool City Region, North East and West Midlands), while others have stated that they are not proposing tax incentives (eg South Yorkshire and Greater Manchester).
- An Enhanced Investment Zone for Northern Ireland worth £150 million was announced in February 2024 as part of the package to restore the devolved government at Stormont. It is not yet clear whether £150 million is the funding for five years and will be doubled to £300 million over ten years in a similar way to the Zones in the rest of the UK.
- Timing: the previous government aimed to agree all English Investment Zone proposals by summer 2024 with funding available from 2024-25 to 2033-34 and indicated that full details of the four Investment Zones in Scotland and Wales will be announced later in 2024. The current government confirmed the funding for Investment Zones in Autumn Budget 2024, but has not provided a timescale to agree the outstanding Investment Zones.
Resources (click to open)
- Investment zones in England (Guidance, Department for Levelling Up, Housing and Communities, April 2024)
- Investment Zones update Spring Budget 2024 (Department for Levelling Up, Housing and Communities, HM Treasury, March 2024)
- Northern Ireland Command Paper (HM Government, February 2024)
- New Investment Zones announced in England and Wales (Department for Levelling Up, Housing and Communities, November 2023)
- Investment Zones: technical document (Department for Levelling Up, Housing and Communities, July 2023)
- Freeports and Investment Zones: Where did they end up, and where are we going? Part 2 – Investment Zones | TaxScape | Deloitte (July 2023)
- New UK investment zones announced to grow the economy in Scotland (Department for Levelling Up, Housing and Communities, June 2023)
- Freeports and Investment Zones: Where did they end up, and where are we going? | TaxScape | Deloitte (March 2023)
- Investment Zones Policy Offer (HM Treasury, Department for Levelling Up, Housing and Communities, March 2023)
