Sources said the controversial move was being considered ahead of a mini-budget from the chancellor, Kwasi Kwarteng, on Friday, which outlined the government’s growth strategy and promised tax cuts. Reams of environmental and zoning regulations are expected to be scrapped to “drive growth and accelerate growth” in the first batch of around 12 investment zones. The zones are modeled after free ports and are intended to encourage more business investment by providing tax breaks to companies and cutting red tape. Prime Minister Liz Truss floated the idea during her leadership campaign, saying it would help her plans to “unleash investment and boost economic growth across the country”. Councils began expressing interest in applying to become investment zones this week, and Kwarteng hopes he can point to the take-up as evidence of the policy’s popularity in his speech to the House of Commons later this week, insiders said. A letter from the leveling department sent to local authorities and seen by the Guardian said one of the main benefits of becoming an investment zone would be “designated planning sites for development and housing”. He added: “Where planning applications remain essential, they will be radically streamlined. Planning sites may be co-located or separate from tax sites, depending on what makes the most sense for the local economy.” While each deal will be bespoke, local authorities granted investment zone status may be able to allow developers to bypass requirements for affordable housing to be built alongside any proposed new property, according to government sources. And planning obligations, such as section 106 agreements, which require developers to ease pressure on the local area by building or paying for additional infrastructure in exchange for planning permission, could also be reduced in the first batch of investment zones. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Plans are also thought to have been drawn up to ban development in the green belt to include an exemption for investment zones. However, the idea was not promoted. Simon Clarke, the incoming secretary, is said to be wary of the latest Tory rebellion over planning reforms, which Boris Johnson’s government was eventually forced to abandon. The leveling department declined to comment on speculation about the upcoming fiscal event.
