Kwasi Kwarteng announces ‘investment zones’ with huge tax cuts for businesses
Businesses will receive big tax cuts and fewer restrictions on building in new “investment zones” across the country, the chancellor, Kwasi Kwarteng, has announced.
Stamp duty will be abolished, employment taxes will be slashed, planning rules will be swept aside and companies will be able to completely write off investments in plant and machinery as part of the plans, Kwarteng announced in a mini-budget on Friday, as part of a major package of tax cuts.
The controversial announcement has already drawn fire from tax campaigners, who described it as triggering a “race to the bottom”.
However, in a sign of the breakneck pace at which sweeping new measures are being introduced, the Treasury said it was unable to provide details of how much they would cost because “full details on implementation are yet to be determined”.
The government is talking to 38 local authorities in England about the plans. Scotland, Wales and Northern Ireland will also “benefit if they are willing to do so”, he said.
“That is an unprecedented set of tax incentives for businesses to invest, to build and to create jobs right across the country,” Kwarteng said. “If we really want to level up, we need to unleash the power of the private sector.”
The Treasury said areas will only qualify to be investment zones – with the associated planning liberalisation – “after local consent is confirmed”. The government will liberalise planning rules and specify agreed sites in an aim to accelerate development.
Businesses will receive “accelerated” tax reliefs for 10 years for structures and buildings, and 100% tax relief on investment in plant and machinery. There will be no stamp duty on purchases of land and buildings in those zones, and no business rates for newly
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