As part of next weeks autumn statement, “transformational” housing-led projects are set to announced, replacing the “investment zones” planned by former prime minister Liz Truss.
The “investment zones” were meant to introduce lower taxes temporarily in order to encourage growth. In addition to this relaxed planning regulations were also set to be introduced, a key part of Truss and Kwasi Kwarteng’s mini-budget that was announced last month.
However, government officials are now stating that the plans are set to be scrapped by Jeremy Hunt, despite local authorities already making bids to host the zones.
One consultant who was advising local authorities for the government’s levelling-up funds told the Financial Times:
“Everyone is just so knackered.
They were led up the hill on something they didn’t want to do and didn’t believe in.”
It is believed that Michael Gove lobbied to have the plans removed and even told the BBC that the investment zones “caused some concern” due to the potential environmental implications. He suggested instead the planned zones be replaced by a urban regeneration policy. He said:
“One thing is we’ll look at them, we will review them, but there is no way we are undermining our environmental protections.”
The plans are set to scrapped after Whitehall insiders said the levelling-up department had “downed tools” on the plan. The plans are set to be replaced by Gove’s “transformational” housing-led urban regeneration projects.
The news plans would give housing agency, Homes England, a larger role in regenerating land for development by aiming to purchase and clear land for housing developments across the country.
