As part of the recent Spring Budget, the UK government has proposed eight new “investment zones” in England. Each investment zone will have access to £80 million of tax incentives and investment over a period of five years. The new zones will play a significant role in the government’s “Levelling Up” policy, which aims to create more opportunities for people across the country.
Both Greater Manchester and Liverpool have been earmarked to drive growth in the North West. The remaining six zones fall across Northern England and the Midlands, and include the North East, South Yorkshire, West Yorkshire, Tees Valley, West Midlands, and East Midlands.
In addition to England’s eight proposed regions, four more zones are yet to be created in Scotland, Wales, and Northern Ireland.
Investment will focus on supporting research and innovation across “priority” industries such as life sciences, green industries, creative industries, digital & tech, and advanced manufacturing. The agenda aims to bring local leaders together with universities and research institutions, and encourage R&D spending outside of the southeast of England. This will not only drive growth on a local and national level but also bring the UK closer to its goal of achieving net zero.
Specific tax and regulatory rules will also help attract new businesses and drive productivity and growth. Tax incentives include full stamp duty land tax relief, 100% business rates relief, 100% first-year capital allowance, increased structures and buildings allowance, and relief on employer national insurance contributions.
British Property Federation Chief Executive Melanie Leech, said:
Taken together with the chancellor’s announcement for 12 new Canary Wharf-inspired investment zones and further Levelling Up funding, towns and cities across the country will move towards a more strategic and targeted framework of interventions.
£100m of investment has also been allocated to 26 research and development projects across Greater Manchester, West Midlands, and Glasgow. Notable projects include The Manchester Turing Innovation Hub, which aims to connect business to ground-breaking AI; and the acceleration of new health and medical technologies led by the University of Birmingham.
With investment set to pour in over the next five years, the future looks bright for Northern England and the Midlands. Local authorities will have the money and means to raise skills, develop infrastructure, encourage innovation, and ultimately drive growth.
Regional property markets across Northern England are already leading the nation in terms of house price growth. According to Rightmove’s most recent report, both the North West and North East have seen a 4.7% increase in house prices in the year to March—the highest in the country. Despite this, property here remains much more affordable than most other UK regions.
The government’s new agenda will no doubt propel regional property markets forward in the twelve proposed investment zones. With new levels of growth on the horizon, investors are armed with yet another reason to invest in booming areas such as Manchester and Liverpool.
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