Referral of the proposed English Investment Zones Scheme by the Department for Levelling Up, Housing and Communities
The Subsidy Advice Unit (SAU) has published a report providing advice to the Department for Levelling Up, Housing and Communities (DLUHC) concerning its proposed English Investment Zones scheme.
Administrative timetable
| Date | Action |
| 17 April 2024 | SAU’s report published |
| 15 March 2024 | Deadline for receipt of any third-party submissions (submissions after 5pm on this date cannot be taken into account) |
| 4 March 2024 | Beginning of reporting period |
Final Report
17 April 2024: The SAU has published its report providing advice to DLUHC concerning its proposed English Investment Zones scheme. The report includes the SAU’s evaluation of DLUHC’s Assessment of Compliance of its proposed scheme with the requirements set out in the Subsidy Control Act 2022.
- Final report (17.4.24)
Request from DLUHC
4 March 2024: The SAU has accepted a request for a report from DLUHC concerning its proposed English Investment Zones scheme. This request relates to a Subsidy Scheme of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of DLUHC’s assessment of whether the subsidy scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the subsidy scheme provided by DLUHC
The English Investment Zones subsidy scheme will come into effect from Spring 2024, ending in 2034. The scheme will allow the relevant public authorities to give subsidies in English Investment Zones in the form of tax reliefs or grant funding in order to help achieve the objectives of the policy. DLUHC published the policy prospectus for Investment Zones in Spring 2023, and began developing proposals with selected places shortly thereafter. Investment Zones are a critical part of the levelling up agenda and will catalyse investment into a small number of high potential areas in need of levelling up to boost productivity and growth.
Businesses are eligible to receive a subsidy in the form of tax relief, under the scheme, if they undertake the following activity in an Investment Zone tax site. These will be available for 10 years:
- full Stamp Duty Land Tax relief for land and buildings bought for commercial use or development for commercial purposes.
- 100% relief from business rates on newly occupied business premises, and certain existing businesses where they expand in Investment Zone tax sites.
- 100% first year capital allowance for companies’ qualifying expenditure on plant and machinery assets for use in tax sites.
- accelerated relief to allow businesses to reduce their taxable profits by 10% of the cost of qualifying non-residential investment per year, relieving 100% of their cost of structures and buildings over 10 years.
- zero-rate Employer National Insurance Contributions (NICs) relief on salaries of any eligible new employee working in the tax site for at least 60% of their time, on earnings up to £25,000 per year, with Employer NICs being charged at the usual rate above this level. This relief can be applied for 36 months per employee.
Under the scheme, public authorities can give subsidies to businesses in the form of a grant if they use it to undertake activity in Investment Zone areas that is aligned with the programme’s policy objectives, under the following 4 themes:
- skills
- research and innovation
- local infrastructure
- business support
Subsidies must comply with the criteria as published in Section 8 of the Investment Zones technical document. Grant subsidies can only be given under clearly defined eligible costs and subsidy intensity thresholds as defined in the scheme’s guidance, and the applicant must demonstrate their grant claim is necessary to the successful delivery of the project or study. Accountable bodies must use objective and transparent selection criteria that are available to potential recipients in advance of giving the subsidy and be subject to the public authorities existing accountability frameworks.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning DLUHC’s proposed English Investment Zones scheme, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at SAU-EnglishInvestmentZones2024@cma.gov.uk copying the public authority at investmentzonesenquiries@levellingup.gov.uk
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
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The SAU will only take your submission into account if it can be shared with DLUHC. The SAU will send a copy of your submission to DLUHC together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy scheme or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with DLUHC using the email address provided above.
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The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
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For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
CMA press team: 020 3738 6460 or press@cma.gov.uk
Last updated 17 April 2024 + show all updates
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Final report published and case closed
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First published.