Tees Valley mayor says scaled back package of investment zones in today’s budget will be along similar lines to Truss’ plan
New investment zones set to be announced in today’s Budget will benefit from accelerated planning rules, according to one of the idea’s architects.
Tees Valley mayor Ben Houchen, speaking to the BBC this morning, said his understanding is the package will work in a similar way to previous plans announced by the short-lived Liz Truss government.
He said: “One of things that will get lost in the noise is there will be a requirement from those investment zone areas to do something about the acceleration of planning and [about] regulation.”
Chancellor Jeremy Hunt is set to announce fresh plans for 12 investment zones in the Budget backed by £960m in funding.
Hunt said the government will enter into discussions with 12 areas, including eight in English combined authorities, each backed by £80m, with four further Zones to be established in the devolved nations.
The areas will have tax incentives and will be clustered around research institutions such as universities and will be focused on driving growth in areas including technology, creative industries, life sciences, advanced manufacturing and the green sector.
Funding through the scheme will be used to improve the planning system, as well as provide specialist business support or to boost local infrastructure.
But the plan for zones in just 12 areas compares to the 200 wanted by Truss.
Houchen said: “There are going to be far fewer [zones] which I think is a sensible thing to do, because then we can have targeted interventions across the country rather than just a free-for-all.
“If you are going to do more than 200, which I didn’t think was the best of ideas, you might as well do it for the whole country.”
Eight places in England have been shortlisted so far to host Investment Zones (see box) with discussions to be held on how they could work in Wales, Scotland and Northern Ireland.
Eight places shortlisted for zones to date
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
Hunt is also expected to announce £100m for ‘high-tech innovation clusters’ in Glasgow, Greater Manchester and the West Midlands.
He said: “True levelling up must be about local wealth creation and local decision-making to unblock obstacles to regeneration.
“From unleashing opportunity through new Investment Zones, to a new approach to accelerating R&D in city regions, we are delivering on our key priority to supercharge growth across the country.”
Hunt is expected to unveil his Budget at 12.30 today.
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