North Lincolnshire Council

North Lincolnshire has been invited by Government to become a new ‘investment zone’ – a proposal designed to drive business growth, create jobs and increase wages.

The council is one of 40 areas confirmed by Chancellor of the Exchequer Kwasi Kwarteng MP in a fiscal statement delivered in the Houses of Parliament this morning.

Cllr Rob Waltham, leader, North Lincolnshire Council, said: “This latest announcement is further evidence of Government support for our existing plans.

“It should mean we can move at a greater pace to enable businesses to invest and grow to create more jobs and drive wages even higher here in North Lincolnshire.

“We have already had a great deal of Government cash to back our plans and these proposals will further simplify the investment process for businesses – it will make areas of the county more attractive and will ensure speed of delivery.

“We’ll work with Government to ensure we can take advantage of these plans for the people in North Lincolnshire, attracting additional investment, creating new jobs and supercharging wages.”

The investments zones will be subject to more liberal planning rules in specified agreed sites to release land and accelerate development.

They will also include, for the first ten years, accelerated tax reliefs for structures and buildings, 100 per cent relief on qualifying investments in plant and machinery, no stamp duty on purchases of land and buildings for commercial or new residential developments, no business rates on newly occupied business premises and for every new employee the business will pay no National Insurance on the first £50,000 they earn.

The Chancellor also confirmed the Energy Price Guarantee for households and the Energy Bill Relief for businesses, charities, schools and hospitals.

The first will cap the cost of electricity and gas for households, saving an average of £1,400 a year and upwards of £2,200 for those on the lowest incomes.

Further announcements included reviews of the planning process and the Government business case process to speed up decision making and extra support for unemployed over 50s.

Stamp duty changes were confirmed, raising the starting point from £125,000 to £250,00 and increasing the starting point for first time buyers from £300,000 to £425,000.

Additionally, a planned increase in corporation tax will now not happen, duty on alcohol will be frozen, National Insurance will be reduced from November 6 and the 20 per cent rate of income tax reduced to 19 per cent next April.

Cllr Waltham added: “Along with the measure to create more jobs and increase wages, these plans will also put more money in people’s back pockets.

“Faced with the increased cost of living, these changes will ensure those people working on the steelworks and in factories across the area, along with nurses and teachers, will get some extra cash every month we know will be spent supporting local shops, pubs and restaurants.”

Hundreds of jobs will be protected across North Lincolnshire following the announcement of additional support for energy costs for businesses, charities, schools and hospitals.

The Energy Bill Relief Scheme – announced by the Secretary of State for Business – comes alongside the Energy Price Guarantee which was put in place for households and froze average bills at around £2,500, dependent upon usage.

This latest measure comes as gas and electricity prices have been significantly inflated in light of global energy prices.

The announcement has been welcomed, particularly in North Lincolnshire where around 18,000 people work in the manufacturing sector, an energy intensive industry. Some 3,500 people also work in the hospitality sector.

Cllr Rob Waltham, leader, North Lincolnshire Council, said: “This latest announcement will protect jobs here in North Lincolnshire. Global inflation, driven in a large part by Russia’s invasion of Ukraine, was putting many businesses, particularly smaller family firms, in precarious positions.

“It will be welcome news also to charities, schools and health care providers – further protecting jobs in those sectors too. These organisations, as with our many businesses are the heartbeat of our communities, providing employment and opportunity for the people who call North Lincolnshire home.”

Through the new Government Energy Bill Relief Scheme, a discount on wholesale gas and electricity prices will be provided for all non-domestic customers – including all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals.

The move caps bills at £211 per MWh for electricity and £75 per MWh for gas – less than half the expected cost this winter – and removes green levies. The measures, which will be applied directly to bills, will begin in October and last for six months.

As with the Energy Price Guarantee for households, customers do not need to take action or apply to the scheme to access the support. The discount will automatically be applied to bills.

The move has been welcomed by industry bodies, with the chief executive of UK Hospitality, Kate Nicholls, saying: “This intervention is unprecedented, and it is extremely welcome that Government has listened to hospitality businesses facing an uncertain winter.

“We particularly welcome its inclusiveness – from the smallest companies to the largest – all of which combine to provide a huge number of jobs, which are now much more secure.”