Chesterfield Borough Council has welcomed the Government’s confirmation that the East Midlands Investment Zone scheme is to go ahead with potentially ‘£160m’ of funding including the development of the former Staveley Chemical Works site and the former Hartington Colliery site.
Prime Minister Sir Keir Starmer has announced that Investment Zone schemes for the UK are set to go ahead as part of the Autumn Budget with additional plans for five new ‘low-tax’ Freeports.
Council Leader, Cllr Tricia Gilby, said: “Government’s confirmation of support for the new East Midlands Investment Zone is fantastic news for Chesterfield – paving the way for us to work with partners and landowners to incentivise and accelerate delivery on these key sites, to create more jobs, more business start-ups and more houses.”
The East Midlands Combined County Authority predicted at its inaugural Investment Committee meeting, at Chesterfield Town Hall, that EMCCA would receive confirmation by the end of October and the authority stated that it hopes to receive ‘£160m’ of Government funding for the East Midlands Investment Zone scheme.
Chesterfield Borough Council and EMCCA also hope the funding will soon be made available to spread over ten years at three sites – the Hartington-Staveley site, in Chesterfield borough, Infinity Park, at Derby, and The Explore Park, at Worksop – to support growth in green industries and advanced manufacturing.
The three EMIZ designated sites aim to have areas that provide a series of tax benefits to companies newly occupying them, and Hartington-Staveley and Infinity Park will also benefit from Business Rate Retention mechanisms.
A percentage of the potential ‘£160m’ of Government funding is to be used to service the tax benefits for the three sites, according to EMCCA.
Funding is also expected to support a ‘Sprint initiative’ establishing a platform for concerned organisations.
An allocation of the first year’s funds will also hopefully be used to unlock investment and to support strategic planning, a pipeline of investment projects, and to help with strategy development and capacity building.
There will also be funding and grants for investment proposals and business cases, for developing new technologies, skills and training, and for research, innovation roadmaps and pilot projects.
Chesterfield Borough Council previously stated being part of EMIZ is expected to bring tax incentives including possible Stamp Duty Land Tax Relief on commercial land and buildings, as well as possible Business Rate Relief on newly occupied business premises and for other certain existing businesses on EMIZ tax sites.
It added that it anticipates a first year Enhanced Capital Allowance for companies with expenditure on plant and machinery assets in the tax sites while other benefits could include an Enhanced Structures and Building Allowance and Employer or National Insurance Contributions Relief.
The council also expects there to be opportunities for interested parties to bid for funding which may be available for research, innovation, skills, infrastructure, land enterprise and business support, planning and developments as part of any future reinvestment strategy for the EMIZ.
Cllr Gilby added: “The Investment Zone will bolster the council’s existing £2bn growth programme, and through the incentives on offer will create major opportunities to attract new green technology and advanced manufacturing businesses to these former industrial sites and hundreds of new high-quality jobs for local people.”
East Midlands Mayor Claire Ward told a recent meeting that EMCCA will see where proceeds created by the EMIZ can be reinvested and the three sites will need skills and a supply chain so the authority will be looking at connectivity and driving transport links across the region.
Ms Ward described the EMIZ announcement as ‘great news’ and that it will help ‘turbo-charge our economy’ by attracting more investment and creating opportunities, jobs and apprenticeships for businesses and residents.
Sir Keir Starmer also announced plans for five new ‘low-tax’ Freeports which are areas near shipping ports where imported goods are free from taxes.
The East Midlands boasts a Freeport near East Midlands Airport which supports parts of Derby, Nottingham and Leicester and like others it is expected to see more involvement from local authorities, businesses and local politicians.
Both the Freeports and the Investment Zones are expected to help create thousands of jobs and more trade and boost economic growth.
