Hundreds of ‘investment zone’ bids axed as Sunak dismantles Truss policy

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Exclusive: council bids for tax breaks and liberalised planning rules axed as government dismantles Liz Truss’s agenda

Ministers still want to salvage elements of the investment zones scheme, sources said, given the amount of time councils put in to their applications and the extensive information they provided about specific wants and needs.

Redesigning the scheme is also seen as a bid to keep Truss and her former cabinet ministers happy, given that they have become increasingly emboldened at making interventions critical of the government – most recently on childcare and onshore wind power. Investment zones were initially billed as a way to drive growth by cutting red tape, including planning regulation, and offering time-limited tax incentives.

A government source said it was “Liz’s policy, she wanted it, was in the meetings and had all the details”. After Truss called her critics the “anti-growth coalition”, another insider admitted: “There’s a desire now she’s gone not to be seen as innovation killers.”Discussions have been held between the Treasury and the Department for Levelling Up for several months about rebadging the schemes as research and development zones, innovation zones, or academic zones.

Several Whitehall officials suggested there had been disagreements between the departments, with some iterations rejected for being “half-baked”.Archie Bland and Nimo Omer take you through the top stories and what they mean, free every weekday morningNewsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our

 

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