As we approach one year since Investment Zones were first announced by then-chancellor Kwasi Kwarteng in the Autumn ‘mini-budget’, mid-market business leaders in the East Midlands are encouraged by the blueprint for what it could mean for the selected regions.
In Grant Thornton’s latest Business Outlook Tracker survey, over half of business leaders in the East Midlands (56%) said that they believe the introduction of Investment Zones will help towards the government’s Levelling Up agenda.
A significant number of respondents also said that being located within one of the Zones would help support the local region, with factors such as job creation and skills development (62%) and 72% said being located within an Investment Zone would be beneficial to local businesses in the area.
Investment Zones provide a number of financial incentives to local businesses in the area and a clear majority (62%) of East Midlands business leaders believe that these incentives, such as Stamp Duty Land Tax relief and 100% Business Rates relief, are focused on the right areas to encourage business investment. Additionally, over half (63%) also believe that being located within an Investment Zone would encourage businesses to stay within the local area.
However, the survey also revealed that business leaders in the East Midlands believe that the twelve proposed locations are not completely adequate, with 60% of business leaders believing that there should be more Investment Zones located in other areas in the UK.
Currently, eight of the twelve proposed Investment Zones will be in England with at least one of the remaining four in each of Scotland, Wales and Northern Ireland. Eight have already been shortlisted in England, including the East Midlands.
James Brown, practice leader for Grant Thornton UK LLP in the East Midlands, said: “It is great to see that businesses across the East Midlands are welcoming our region being one of the chosen locations for an Investment Zone. Together, with the creation of a new Mayoral Combined Authority, these mechanisms will help our region take greater control of its own destiny and overcome some of the issues that have held back growth in recent history.
“For example, we can achieve so much more by fostering better cross-sector working practices. We hope that this new Investment Zone will enable greater collaboration between our forward-thinking businesses and our six brilliant universities, helping us to deliver a stronger regional economy and support the creation of a talented workforce fit for the industries of the future.
“Our region is blessed to have Nottingham – which is becoming a real leader in low-carbon technologies – yet it is vital that businesses throughout the entire East Midlands region feel the benefit of the Investment Zone, and at Grant Thornton we look forward to working with businesses of all sizes across the six East Midlands counties to ensure every opportunity is seized upon.”
