Commons Sense

House of Commons · Ministers' Questions

Investment Zones

Monday 17 October 2022 · 8 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 7 Not answered 0

Key points

  • Nigel Mills inquired about the interaction between investment zones and freeports, and the possibility of dual statuses for sites to enhance growth.
  • James Davies questioned the progress on securing the engagement of the Welsh Government for the implementation of investment zones in Wales.
  • David Jones emphasized the importance of avoiding a hard economic border between north Wales and the north-west of England, advocating for equal economic advantages.

Topics (select to filter)

Questions & Answers

Q1 Nigel Mills Con
Business & Trade
Context

MP asked about interaction between investment zones and freeports.

Question

I thank the Secretary of State for that answer. I hope he will look favourably at the bids from Derbyshire that were duly submitted last week. Can he confirm how investment zones will interact with freeports and whether sites could have both statuses to really supercharge growth on those sites?

Answer from Simon Clarke

I am a convinced believer in the merits of freeports. Clearly, the final Government approval for some of those will go into place this autumn, and many are already operational. We are already seeing investment in freeports that we want to see in investment zones. Investment zones have the chance through a very simple streamlined expression of interest process to upgrade to full tax freedoms.

Partly answered

Not addressed: Did not confirm whether sites can have both statuses, only mentioned potential upgrades from investment zones to freeport status

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Q2 James Davies Con
Wales
Context

MP asked about progress on securing engagement with the Welsh Government for investment zones.

Question

The Government intend investment zones to be located UK wide, but, in my constituency and the rest of Wales, that requires the engagement of the Welsh Government. Will my right hon. Friend update the House as to progress on securing that engagement?

Answer from Simon Clarke

My hon. Friend and his colleagues from north Wales have already been absolutely passionate advocates of the potential of investment zones to benefit their region. He is quite right that we will need the co-operation of the Welsh Labour Government to unlock the full benefits of these zones. Discussions are ongoing with the Welsh Government, and I am delighted that I will have his support in making the case to their Minister for the Economy that Welsh Labour should embrace these zones.

Partly answered

Not addressed: Did not confirm the specific progress or status of discussions

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Q3 David Jones Con
Economy Wales
Context

MP asked about engagement with Welsh local authorities and North Wales Economic Ambition Board to ensure north Wales gets investment zones.

Question

Further to the last question, my right hon. Friend will know that north Wales is part of the same economic region as the north-west of England, and it is therefore essential that it should have the same economic advantages. Can he confirm that he will be engaging not only with the Welsh Government but with Welsh local authorities and with the North Wales Economic Ambition Board with a view to ensuring that north Wales gets investment zones at the earliest possible moment?

Answer from Simon Clarke

My right hon. Friend is exactly right: we need to avoid there being a hard border between England and Wales, and indeed between Scotland and England, on these questions. It is vital that we make sure that we listen to the voice of business and local government as well as to MPs—my hon. Friends the Members for Clwyd South (Simon Baynes), for Ynys Môn (Virginia Crosbie), for Vale of Clwyd (Dr Davies) and for Aberconwy (Robin Millar) have already met me about this issue—to make sure that we avoid the disaster for north Wales of England proceeding with these zones and Wales not choosing to do so.

Partly answered

Not addressed: Did not confirm specific engagement plans beyond listening to MPs

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Q4 Clive Betts Lab Sheffield South East
Economy Local Government
Context

MP asked about the financing of investment zones, particularly whether it is new money and not found by transferring from other parts of local government budgets.

Question

It seems that investment zones are one of the few bits of the mini-Budget that are still on the table. Can the Secretary of State clearly explain how investment zones will be financed? Will it be completely new money, and, given the pressure that local authorities have been under from austerity and now from inflation, will he give an assurance that the money for investment zones will not be found by transferring it from other parts of the local government budget and particularly from levelling-up funds?

Answer from Simon Clarke

Yes, this is new money. It is coming from the Treasury as part of the settlement. Clearly, my right hon. Friend the Chancellor will be setting out the medium-term fiscal plan on 31 October and that will be the moment of confirmation.

Answered
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Q5 Emma Hardy Lab Kingston upon Hull West and Haltemprice
Agriculture & Rural Affairs
Context

MP asked about guaranteeing no reduction in flood protection measures due to investment zones.

Question

What guarantee can the Minister give that investment zones will not lead to any reduction in the desperately needed flood protection and flood mitigation measures? Will the Minister look again at the amendments that I have tabled to the levelling-up Bill to look at strengthening flood protection and mitigation?

Answer from Simon Clarke

The hon. Lady is right to advocate for flood protection, which is vital. I actually welcome her question, because it is an important chance to reaffirm that investment zones are not in any way about cutting away environmental protection. They are about streamlining planning and making sure that lower taxes are on offer in targeted sites. Overwhelmingly, they will benefit brownfield regeneration projects, which would otherwise take years to unlock.

Partly answered

Not addressed: Did not give a clear guarantee against reducing flood protection measures

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Q6 Andrew Gwynne Ind Gorton and Denton
Economy Taxation
Context

MP asked about the tax advantages for investment zones and displacement of employment.

Question

Although this is the current game in town, I will be clearly supporting Greater Manchester's bid to Government, which includes proposals for the Ashton mosque area in my constituency. However, given that this is still part of the mini-Budget—the only bit that has not been shredded yet—can the Secretary of State outline what the tax advantages to an investment zone will be? Can he clarify to the House that expects there to be not displacement of employment across the city region, but genuine growth?

Answer from Simon Clarke

Obviously, genuine additionality is the litmus test that we set for this policy, although it is vital to note that I see no harm in ensuring that, in areas where there is real opportunity, we bring good opportunities. On tax advantages, there will be a range of powers available, including on business rates relief, enhanced structures and buildings allowances, enhanced capital allowances and, critically, action on employer national insurance contributions, designed to ensure that there are incentives for new jobs in the zones.

Partly answered

Not addressed: Did not clarify whether displacement of employment is expected or avoided

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Q7 Robin Walker Con
Economy Housing Transport
Context

The potential for brownfield development around Worcester Shrub Hill station, proposed by local councils and the Worcestershire local enterprise partnership.

Question

Worcester Shrub Hill station offers an opportunity for brownfield development to provide jobs and homes in a connected area of Worcester. Does my right hon. Friend agree that an investment zone around Shrub Hill would be beneficial for levelling up?

Answer from Simon Clarke

My hon. Friend makes a compelling case; there is huge interest in investment zones from local authorities, and these zones will deliver growth and investment opportunities.

Partly answered

Not addressed: The answer did not directly confirm or deny the specific proposal for Shrub Hill station but instead spoke generally about the popularity of investment zones.

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Q8 Peter Dowd Lab Bootle
Employment Business & Trade Environment
Context

Criticism from the National Audit Office, Public Accounts Committee, and Centre for Cities regarding job creation in enterprise zones.

Question

Why does the Secretary of State think that investment zones will be more productive than previous zone proposals, especially given concerns about environmental standards, planning processes, and workers' rights?

Answer from Simon Clarke

The hon. Gentleman is wrong; there is no reduction in workers' rights or environmental standards. Investment zones aim to deliver jobs and growth through lower taxes and streamlined planning.

Partly answered

Not addressed: While addressing concerns, the answer did not provide concrete evidence of productivity increases over previous initiatives.

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