Lancashire in the running for government's new Investment Zones programme

Lancashire is being considered as one of the areas to benefit from tax cuts and relaxed planning rules under a flagship government proposal announced in the chancellor's recent "mini-budget".

Kwasi Kwarteng described how the new Investment Zones will be given support to become hubs for growth, encouraging investment in new shopping centres, restaurants, apartments and offices, and creating thriving new communities.

Lancashire is one of 38 regions in consideration to receive "generous, targeted and time limited tax cuts for businesses and liberalised planning rules to release more land for housing and commercial development".

Businesses in designated areas in investment zones will benefit from 100 per cent business rates relief on newly occupied and expanded premises. Local authorities hosting Investment Zones will receive 100 per cent of the business rates growth above an agreed baseline in designated sites for 25 years.

There will also be full stamp duty relief on land bought for commercial or residential development and a zero rate for Employer National Insurance contributions on new employee earnings up to £50,270 per year. To incentivise investment there will be a 100 per cent first year enhanced capital allowance relief for plant and machinery used within designated sites and accelerated Enhanced Structures and Buildings Allowance relief of 20 per cent per year.

Details of the planning incentives have yet to be published.

County coun Phillippa Williamson, leader of Lancashire County Council and chair of Lancashire Leaders, said: "We are delighted that Lancashire has been included in the initial wave of Investment Zone discussions given the opportunities that it will bring to attract further investment, unlock development and economic activity boosting jobs and growth to our county through a targeted approach.

"There is massive potential across Lancashire and we are ready to move at pace using our existing development pipeline as well as new, ambitious opportunities including those aligned to the development of our historic new 'Lancashire 2050' strategy.

"In all, our current pipeline of major development and infrastructure projects has an estimated value of more than £20bn and we are at an advanced stage of developing further strategic investment opportunities with a wide range of national and regional partners.

"We are very much looking forward to working with government on the development of Investment Zones and to the benefit it will bring Lancashire."