Tees Valley is expected to be one of the first areas in the UK to create new investment zones that stimulate the economy and are designed to stimulate economic growth.
Chancellor of the Exchequer Kwasi Kwarteng is expected to make a statement tomorrow (September 23) on the government’s growth plan.
Middlesbrough and Hartlepool are to be the first two areas proposed by Tees Valley Mayor Ben Houchen to benefit, with Mayoral Development Corporations for each city up and running by the end of the year.
Investment zones aim to stimulate development, investment and job creation through the application of tax incentives for businesses, similar to those that exist in free ports.
They are designed to increase investment incentives while reducing red tape.
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Currently, half of the fees are from local governments and the remaining half from the central government.
Under the New Zone Investment Zone proposals for new payers in the zones, it is expected that 50 percent will be turned over to local authorities and 50 percent will be retained by the mayor to be reinvested in projects that will contribute to the development of the region.
This will not affect the council’s finances.
Changes in capital allowance rules and employers’ national insurance contributions will also increase private sector investment in these areas, as they will benefit from lower costs.
Eliminating red tape around planning rules will allow businesses to open a store faster, easier and more efficiently, eliminating the need for lengthy negotiations between developers and local councils.
This, in turn, will create jobs, and the region will benefit even faster from investments in new shopping centers, restaurants, apartments and offices.
Tees Valley Mayor Ben Houhen said: “These new investment zones will complement what we are about to do with the new Mayoral Development Corporations in Middlesbrough and Hartlepool and, as with Teesside Freeport, we are once again leading the way. otherwise.
“These plans will go even further than before to stimulate local, national and international investment in our urban centers at a time when all eyes are already on us.
“We know better than anyone what our region needs, so by keeping all the money from these investments in our region, and not in the hands of Whitehall, we can reinvest it to achieve local development priorities.
“This is a great cycle – as more businesses are housed here, we will have more funds to improve our cities, which in turn will attract more companies, generating even more money for recovery.
“All the while, they will be creating the quality, well-paying jobs we need in our urban centers without the taxpayer paying a dime.
“This is a chance to create urban centers that we can be proud of in Middlesbrough and Hartlepool by lowering taxes, making planning easier and securing private sector investment even faster.
“These investment zones will usher in a new era of investment so that we can build on our strengths and capture new opportunities for years to come.
Speaking in the House of Commons tomorrow, Chancellor of the Exchequer Kwasi Kwarteng is expected to say: “The time it takes to get approval for nationally significant projects is getting slower, not faster, as our international competitors move forward.
“We must put an end to this.
“In order to support growth across the country, we need to go further and act with purpose on the ground.
“We are liberalizing planning rules in certain agreed areas, freeing up land and accelerating development.
“And we will cut taxes, and businesses in designated locations will benefit from generous tax breaks.”
Speaking about his priorities in his speech, Mr. Kwarteng is expected to say: “Growth is not as high as it should be, which makes it difficult to pay for public services, requiring higher taxes.
“This cycle of stagnation has meant that the tax burden is projected to reach its highest level since the late 1940s.
“We are determined to break this cycle. We need a new approach for a new era of growth.
“This is how we ensure higher wages, greater opportunity and sufficient income to fund our public services now and in the future.
“This is how we will successfully compete with dynamically developing economies around the world.
“This is how we turn the vicious cycle of stagnation into a virtuous cycle of growth. “We will be bold and shameless in our pursuit of growth, even where it means making difficult decisions.
“The delivery work starts today.”
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