As part of the levelling-up agenda, the UK government announced the creation of eight Investment Zones in England in order to “drive business investment and level up” areas of potential outside of London.

The proposed Investment Zones in England will be in Greater Manchester, Liverpool, South Yorkshire, West Yorkshire, the West Midlands and Tees Valley. With the government focussing discussions with various Combined Authorities:

• The proposed East Midlands Mayoral Combined County Authority
• Greater Manchester Mayoral Combined Authority
• Liverpool City Region Mayoral Combined Authority
• The proposed North East Mayoral Combined Authority
• South Yorkshire Mayoral Combined Authority
• Tees Valley Mayoral Combined Authority
• West Midlands Mayoral Combined Authority
• West Yorkshire Mayoral Combined Authority.

The five priority sectors that Investment Zones will grow and focus on are:

1. digital and tech
2. green industries
3. life sciences
4. advanced manufacturing
5. creative industries.

Each of the zones will be offered £80m, extending over a five-year period, which can be used flexibly between spending and tax relief for businesses, training and infrastructure.

Given the fact that all of these locations benefit, or will soon benefit, from directly elected mayors and the greater expansion of devolution, this will allow greater control and powers to drive the zones forward, which could suggest the zones will be more effective than previous initiatives.

The concept evolved from the white paper published in February 2022. The Government has said they are committed to working collaboratively to develop Investment Zone proposals, offering support and advice throughout the process.

Further technical guidance on the requirements proposals will need to meet will be published in due course and we will keep you updated as this progresses. 

Local Government Forward View 2023

This article is part of Capsticks’ Local Government Forward View 2023. Read the other articles featured in this publication below:

• Combined Authorities
• Building Safety Reforms
• Levelling Up and Regeneration Bill
• Online Safety Bill
• Environmental Impact Assessments
• Procurement Bill
• Industrial action
• The conflict between trans rights and religion or belief
• Public service pension scheme reform

How Capsticks can help

To discuss how this may affect your organisation, please get in touch with Suzanne Smith or Tiffany Cloynes.