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Government could relax planning rules in 12 ‘investment zones’ under new plans, reports say
It is understood that the government is planning to relax planning rules in low-tax “investment zones” to incentivise investment and development in certain areas.
According to several reports in the national media, prime minister Liz Truss could introduce as many as 12 areas where planning laws would be loosened, tax would be lowered for both residents and businesses, and environmental protections diluted for new developments.
No decisions have been officially confirmed yet.
The investment zones are likely to include the West Midlands, Thames estuary, Tees Valley, West Yorkshire and Norfolk.
Chancellor Kwasi Kwarteng is expected to make the announcement about the investment zones in an emergency Budget on Friday.
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The government is initially expected to focus on England, but it is understood that Ms Truss wants to work with the devolved nations to introduce the investment zones in Scotland, Wales and Northern Ireland.
The zones, dubbed “full-fat freeports”, will be part of a package that is also expected to include the temporary removal of green levies from fuel bills, scrapping the rise in National Insurance introduced by Boris Johnson’s government, and scrapping the planned corporation tax hike from 19% to 25% in April 2023.
The tax changes are expected to cost the Treasury £30bn a year.
In her first speech as prime minister, Ms Truss said her three main priorities are tax cuts, the energy crisis and the NHS.
On 8 September, the prime minister announced a series of measures to lessen the strain on domestic and industry bills through caps and support for charities and public-sector organisations.
This included a £2,500 energy cap for two years from October.
However, the death of the Queen on that same day put government activities on hold.
A formal Budget is expected further down the line.
