Yorkshire to get two investment zones in Hunt budget

Jeremy Hunt on Monday evening announced that a quarter of England’s Investment Zones will be based in the county, centred around some of the best universities and research institutions in the UK.

Both the South Yorkshire and West Yorkshire’s combined authorities will be invited to draw up new powers they need to grow industries and create jobs that will drive growth.

These powers include tax incentives for sectors including technology, creative industries, life sciences, advanced manufacturing and the green sector.

The Treasury said that the funding could also be used for skills, business support, the planning system and local infrastructure, costing £80 million over five years.

It comes after The Yorkshire Post revealed that the county was set to get at least one Investment Zone in Mr Hunt’s budget, with insiders telling the paper that Sheffield in South Yorkshire an ideal candidate for selection.

“True levelling up must be about local wealth creation and local decision-making to unblock obstacles to regeneration,” said the Chancellor.

“From unleashing opportunity through new Investment Zones, to a new approach to accelerating R&D in city regions, we are delivering on our key priority to supercharge growth across the country”.

Tracy Brabin, the Mayor of West Yorkshire said that the announcement provides “further opportunities for people across the region, as well as our world leading higher educational facilities, building on our expertise in digital, technology, and health and life sciences.”

Oliver Coppard, her counterpart in South Yorkshire said: “South Yorkshire's steel and energy powered the world into the first industrial revolution, and we know we have the potential to lead the world into the next one.

“We're home to businesses and institutions working at the forefront of advanced manufacturing, health sciences and green technology. We're not just imagining a better future, we're already making it.”

The Chancellor will also announce investment to fund “deep dive” projects into smaller areas that need regeneration, following the success of an investigation into Grimsby which saw it get £8 million in funding to help the Lincolnshire town’s “Seafood Cluster”.

These “Levelling Up Partnerships” are viewed as a way for areas to get funding for more complex regeneration projects that are tailor-made beyond investment in a single project such as a new swimming pool, which would be covered by the Government’s Levelling Up Fund.

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said: "The ability to retain the growth in business rates is fundamental for freeports and has been a key element of previous city deals.

“This enables the financing of investments to create economically successful ecosystems which otherwise would not be generating any tax – that is highly attractive to high value inward Investors as well as start-ups, including university spin outs.”

IPPR North research fellow Marcus Johns told The Yorkshire Post: “Tax cuts alone will not drive regional growth.

“Levelling up is on life support, to revive it and unlock national growth, we need ambitious, long-term investment in local places across the country, building on places' assets and the talents of their people.

"In this vein, it looks welcome that the chancellor is set to invest in research- and innovation-led clusters in South and West Yorkshire, leveraging their excellent universities.”