Investment zones bid for the Black Country and Staffordshire likely to face axe, reports say
Investment zones which leaders in the Black Country and Staffordshire bid for are set to be axed by Chancellor Jeremy Hunt next week, reports suggest.
The Government is believed to be scrapping the scheme – one of former Prime Minister Liz Truss' flagship policies – in the upcoming Autumn Statement.
It comes after bids were made for four zones in the Black Country, with a further one in Staffordshire and two others for the wider West Midlands region.
The move would have seen businesses in certain areas where the zones are located benefit from low taxes and relaxed planning rules to help boost growth.
Levelling Up Secretary Michael Gove indicated last month the former Prime Minister's policy could face the axe amid environmental protection concerns.
Now it is looking more likely with sources telling The Financial Times it is likely to be scrapped as part of an overhaul by the Chancellor on November 14.
The Black Country plans featured a zone along the Wednesbury-Brierley Hill Metro extension, including housing and employment in Dudley town centre, Brierley Hill and Lye. Schemes for housing and industrial space were proposed for Wednesbury and Tipton.
Wolverhampton's scheme centred on a 'green innovation corridor' to the north of the city, as well as housing and employment sites in the city centre.
Meanwhile, Walsall's scheme was set create employment sites near the M6 and in the town centre, with a mix of commercial and residential development across the wider borough.
Schemes were also been put forward for North Solihull and the proposed gigafactory site in Coventry, whilst Staffordshire's bid concerned two sites along the A50/A500 routes.
The West Midlands' bids were spearheaded by the region's mayor Andy Street who called for Prime Minister Rishi Sunak to make them a "key component" of the levelling up agenda.
"If Rishi Sunak is going to double down on levelling up, I would urge him to make investment zones a key component of this agenda – not least given his track record of championing freeports," Mr Street previously told the Express & Star.
“Even if the Government decides to change the national strategy, we would still advocate for investment zones via our trailblazer devolution deal negotiations with Government – such is our belief in their transformative power.”
Bosses said the zones will make it "easier, quicker and cheaper" for the private sector to do business, helping to attract "significant inward investment".
Investment zones were one of the few remaining features of the Government's mini-budget announced by Kwasi Kwarteng before he was sacked as Chancellor, with the majority of other policies being binned off by Jeremy Hunt.
