THE new Chancellor addressed MPs on Friday, September 23, 2022, to announce his financial plans under Liz Truss’ government.
Kwasi Kwarteng announced the creation of low-tax investment zones – here we explain what that means.
1
What is an investment zone?
Investment zones are areas chosen by the government that will benefit from lower taxes and reduced planning restrictions.
During her Tory leadership campaign, PM Liz Truss said that investment zones would be central for her plans to boost growth.
Chancellor Kwarteng addressed the matter during his mini-budget speech to fellow MPs on Friday, September 23, 2022.
He told the House of Commons: “To support growth right across the country, we need to go further, with targeted action in local areas.
“So, today, I can announce the creation of new investment zones.
“We will liberalise planning rules in specified agreed sites, releasing land and accelerating development. We will cut taxes.”
He explained that the government’s plans for low-tax investment zones for businesses will last at least ten years.
Businesses will also benefit from full stamp duty land tax relief on land bought for commercial or residential development.
Most read in Money
Investment zones will also see accelerated development, with planning applications minimised and streamlined.
Kwarteng revealed that the government is discussing creating these zones in nearly 40 places, as well as devolved administrations.
How do investment zones affect me?
Kwarteng is said to already be in talks with 38 areas across the country about becoming low-tax investment zones.
These areas include:
If you work in an area that is turned into a low-tax investment zone, your business will pay a reduced amount of tax.
This is in the hopes that new jobs will be created and that there will be more investment in new restaurants, shopping centres, offices, and apartments.
