Peterborough poised to go for growth with Investment Zone bid

Work is about to start on an ambitious bid to secure Investment Zone status for Peterborough.

The move comes after Chancellor Kwasi Kwarteng announced the new growth initiative during his mini-budget announcement last week.

If the city bid is successful, it will pave the way to offer businesses tax cuts and a relaxed planning regime in a bid to drive up growth for Peterborough.

Currently 38 cities have been singled out for Investment Zones status but the Government is keen to hear from other areas interested in the programme.

Peterborough MP Paul Bristow said: “We are looking to put together a bid for Peterborough to be part of the Investment Zone initiative.

He said: “If successful, it will mean favourable tax incentives for companies to relocate to Peterborough.

“It will complement the goals of Peterborough’s new university along with the new research and development centre and the planned Living Lab.

“Our bid will have to reflect our seriousness and ambition about growth and that this vision is shared across the city.

And he added: “And there seems to have been support for a bid from Peterborough from Simon Clarke, who has just been appointed Secretary of State for Levelling Up, Housing and Communities (DLUHC).

In a Tweet responding to Mr Bristow’s announcement of a possible bid, Mr Clarke stated: “Another fantastic example of the enthusiasm for Investment Zones from the hard working @paulbristow79.”

Mr Bristow also said that the Investment Zone initiative will not detract from the £22.9 million Levelling Up funds for the city, which have already been tentatively agreed by the Government.

Peterborough is currently waiting for DLUHC approval for a £48 million bid for the Station Quarter development plus £3.5 million split between the Climbing Wall and Activity Centre project at Ferry Meadows and a Green Technology Hub project.

What are the tax benefits in an Investment Zone?

The Government says, businesses will benefit from 100 per cent business rates relief on newly occupied and expanded premises. Local authorities will receive 100 per cent of business rates growth above an agreed baseline.

Businesses get stamp duty land tax relief on land bought for commercial or residential development and a zero rate for Employer National Insurance contributions.