UK manufacturers voice their support for Investment Zone
opportunities
Key findings
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7 in 10 manufacturers said they would invest more in
plant and machinery if in receipt of business rates relief.
Data shows investment zones can have a positive increase on
productivity – especially important in areas where levelling up
is a key focus
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Policymakers should look to promote the zones more
widely in these areas with the support of industry
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Larger firms demonstrate good awareness of the policy
at 85% though there is a case for supporting smaller firms’
understanding as just over half of smaller firms are aware of
Investment Zones
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Clarifying the definition of advanced manufacturing
would help enhance business inclusion
Britain’s manufacturers are set to unlock tax and grant
incentives if they embrace Investment Zones, established to drive
enterprise growth, innovation and the creation of high-quality
new jobs. A new report published today by Make UK and Barclays
Corporate Banking, Investment Zones: Unlocking Growth in the
UK, indicates that the sector backs the Chancellor’s
decision to extend the fiscal benefits of Investment Zones from
five to ten years and say that it makes the scheme much more
attractive for UK companies.
However, there is a strong case for further enhancing business
awareness in Investment Zones with only two thirds of businesses
currently aware of the policy and tax benefits, while a quarter
of businesses remain unclear whether they meet the definition of
advanced manufacturing – a key focus sector for the zones.
To ensure Investment Zones reach their full potential,
policymakers should look to promote their incentives more widely
– especially in areas where levelling up is a key focus. In
particular, Government officials should target green and
technology companies who may be unaware of what is on offer and
the benefits they could reap.
Just over half (59%) of small businesses are aware of Investment
Zones while 68% of medium companies know about them – compared to
85% of large firms. While there is still work to be done, this is
an encouraging finding for the future of Investment Zones, as
often smaller firms lack knowledge of Government schemes, even
those specifically set up to help them grow.
Amongst a raft of benefits, Investment Zones deliver Stamp Duty
Land Tax relief, 100% Business Rates relief, Enhanced Capital
Allowances, Accelerated Relief on Buildings and Structures, Zero
Rate National Insurance Contributions and grants for Research and
Innovation. The scheme also allows for grants to allow skills
training, local infrastructure improvement, local enterprise and
business support and can provide the funding to recruit a
dedicated planning team for the zone.
Seven out of ten manufacturers reported that they would invest
more in plant and machinery if they were in receipt of business
rates relief. Half as many companies said they would increase
investment in structures, as under normal circumstances
increasing the value of the plant and machinery on site would
inevitably raise the rateable value of the property.
Two in three companies say the extension to 10 years means the
zones are a more attractive proposition while half of the sector
say that relocation funding would increase participation in the
scheme. Beyond Advanced Manufacturing, Digital and green
industries are the next most favoured as appropriate sectors,
with 68% suggesting digital while 59% say green companies are the
best way forward.
Stephen Phipson, Make UK CEO, said:
“To ensure maximum benefit for the sector, Investment Zones need
to form part of an overarching long-term Industrial Strategy
which is enshrined in statute so that it is not vulnerable to
change with the political cycles. Government needs to continue to
work with industry to find the best ways of making the
manufacturing heartlands of the UK so even more good quality,
highly paid jobs can be created through our vibrant sector.”
Lee Collinson, Head of Manufacturing, Transport and
Logistics, Barclays Corporate Banking, said:
“Investment Zones have the potential to support growth in
both economic output and employment across the manufacturing
sector. This growth can only be enhanced by raising awareness and
ensuring that manufacturers understand the key benefits. Equally,
as manufacturers are encouraged to explore the value Investment
Zones can bring to their operations, policymakers also have a
role to play to promote their benefits and ensure they are
maximised.”
Read the full report here: Investment Zones:
Unlocking Growth in the UK | Make UK
