• Swindon & Wiltshire News
• Wednesday July 19 2023
• Author Name: Staff Writer

South West business leaders left in the cold from Investment Zones

Almost a year after Investment Zones were first announced by then-chancellor Kwasi Kwarteng in the Autumn ‘mini-budget’, mid-market business leaders in the South West fear they are missing out by not having one within their region.

The ‘knowledge-intensive clusters’ will see industry collaborate with local research institutions, such as universities, and give tax and spending incentives.

Grant Thornton’s latest Business Outlook Tracker survey revealed that mid-market business leaders in the South West believe the twelve proposed locations for the Investment Zones are not sufficient, with over three quarters (76 per cent) agreeing that there should be more located in other areas of the UK.

Currently, of the twelve proposed Zones to be established across the UK, eight will be in England and four elsewhere, with at least one in each of Scotland, Wales and Northern Ireland. Eight have already been shortlisted in England, with none included in the South West.

The benefits on offer for the areas selected for a Zone are clearly understood, with 73 per cent of South West businesses believing they would support the local region, with benefits such as job creation and skills development. Two thirds of respondents (66 per cent) also agree that an Investment Zone would encourage businesses to stay within the local area.

Most respondents in the South West (65 per cent) also believe that the introduction of Investment Zones will help towards the government’s Levelling Up agenda.

The desire for Investment Zones within the regional business community comes at a time when businesses in the South West are very optimistic about their revenue (76 per cent) as well as the UK economy (80 per cent) over the next six months.

Jonathan Riley, practice leader for Grant Thornton UK LLP in the South West, said: “It was a disappointment for our region when the South West was not among the preferred locations for the government’s Investment Zone programme earlier this year. Our survey shows that businesses in the region are well aware of the benefits that Investment Zones could bring – and how they could be key to unlocking the South West’s full economic potential.

“While there’s no denying the economic strength of areas such as Bristol, targeted support for our other innovation hotspots would allow the South West to kick on and rival the economic performance of the South East.”

Investment Zones are expected to provide £80 million support over five years for resource and capital expenditure, with tax incentives including stamp duty relief, 100 per cent business rates relief, enhanced capital allowances, enhanced structures and buildings allowance and lower employer NI contributions.