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Low-tax investments zones are due to be axed.

 


Liz Truss's plans for low-tax investment zones to boost economic growth are due to be axed by chancellor Jeremy Hunt in next week's Autumn Statement.

Two Whitehall insiders said levelling up secretary Michael Gove had lobbied hard for the zones to be ditched in favour of a revamped urban regeneration policy. Although no final decisions have been made, and the zones might instead be scaled back dramatically by Hunt, government officials said the chancellor was expected to kill off what was a pet project of Truss. The former prime minister wanted up to 200 investment zones as part of her plan to turbocharge growth by incentivising companies to set up operations in the low-tax areas. "Everyone is just so knackered," said one consultant advising local authorities bidding for the government's levelling up funds.

Gove, the longstanding architect of Boris Johnson's levelling up agenda who Sunak brought back into government, told the BBC last month that Truss's investment zones had "caused some concern". Whitehall insiders said Gove had told Downing Street that Truss's investment zones should be "shelved" and that levelling up department officials had "downed tools" on the policy.

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  1. Clara9 November 2022 at 11:27

    Don't know what to say about these zones. I don't have all the facts but maybe some part of this was good? I mean shouldn't we encourage investments, especially now?

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