Science & Technology, UK (Commonwealth Union) – The UK Chancellor has announced the extension of the Investment Zones programme in England from five to 10 years. Additionally, the government’s financial commitment and tax reliefs for the program have been doubled to £160 million.
The Prime Minister’s focus on growing the economy and making strategic, long-term decisions for the country is evident. These announcements are part of a broader initiative outlined in the Chancellor’s upcoming Autumn Statement, where he will unveil reforms aimed at stimulating growth, attracting more private investment, and reemploying individuals.
West Yorkshire has been designated as one of the 12 Investment Zones in the UK, centered around the region’s universities in Leeds, Bradford, and Huddersfield, as well as the thriving cluster of life sciences businesses in the area.
Notably, Paxman Scalp Cooling, a pioneering health tech company in the region, is investing £5 million to introduce its innovative health tech products to global markets, specifically designed to minimize hair loss during chemotherapy. Additionally, Dedalus, a digital healthcare company, is contributing £21 million to develop digital and diagnostic tools for the NHS.
The Investment Zone initiative is expected to revitalize sites specializing in health tech and digital sectors across West Yorkshire, leading to the creation of over 2,500 jobs and attracting more than £220 million in investment over the next five years.
On November 20th, the government inaugurated the third Investment Zone in England, situated in West Yorkshire with a focus on Huddersfield, Bradford, and Leeds. This initiative is anticipated to generate over 2,500 new jobs in the region within the next five years, potentially unlocking £220 million in investment.
The funds allocated for this purpose can be utilized flexibly, addressing various needs such as skills development, research and development, and local infrastructure. Tax incentives accompanying this endeavor include 100% Stamp Duty Land Tax relief, an enhanced structures and buildings allowance at a rate of 10% per annum, an enhanced 100% first-year capital allowance, relief on employer National Insurance Contributions, and 100% business rates relief.
In addition, the window for claiming Freeport tax reliefs in England will be extended from five to ten years, lasting until September 2031. This extension aims to provide businesses with greater certainty for investment, fostering growth, job creation, and contributing to economic leveling up.
The UK Government intends to collaborate with the Scottish and Welsh governments to extend Investment Zones and Freeports in Scotland and Wales, mirroring the English extension. Ongoing efforts will also be made to engage stakeholders in Northern Ireland to determine the most effective means of supporting investment in that region.
“We are changing our country for the long term, driving economic growth across all corners of the UK,” said Chancellor of the Exchequer Jeremy Hunt.
“It will mean thousands more jobs in the exciting industries of the future backed up by better infrastructure, and communities to be proud of.”
The Chancellor, accompanied by West Yorkshire Mayor Tracy Brabin, inaugurated the Investment Zone in West Yorkshire at Paxman Cooling. During the visit, they engaged with executives, delving into discussions about the company’s prospective growth.
Expressing her views, West Yorkshire Mayor Tracy Brabin indicated that the success of devolution in West Yorkshire is evident, and the establishment of this new investment zone is yet another acknowledgment of the government’s recognition of their achievements.
“Home to NHS England, our region’s digital and health tech businesses are driving forward innovation and transforming the lives of patients world-wide.”
The West Yorkshire Life Sciences Investment Zone is set to receive a variety of interventions, encompassing skills training and business support, aimed at fostering increased business investment. This strategic plan is poised to stimulate innovation within the vibrant healthcare sector of the region, establishing a talent pipeline at the forefront of technological advancements.
