Member Article

Investment Zone a ‘shot in the arm’ for Teesside

The area head of a leading corporate rescue and recovery practice has welcomed the announcement of Teesside as one of the Government’s first Investment Zones.

In his first ‘mini budget’ newly-appointed Chancellor Kwasi Kwarteng has named Teesside as a pilot for the new economy-boosting schemes.

Now Dave Broadbent, a partner in the North East region for Begbies Traynor, has greeted the news and praised Tees Valley mayor Ben Houchen for his dedication and support in securing Teesside’s position.

Dave says: “I can only welcome the decision with open arms. There’s no doubt that over the years the district has been kicked from pillar to post for example with the closure of ICI and, more recently SSI.

“I’m hopeful that the announcement will encourage businesses to locate in Teesside and provide a much welcome boost to job creation and the region’s economy.

“It’s a major shot in the arm for an area massively in need of investment and will put Teesside firmly on the map.”

He continues: “At the same time I must praise Ben Houchen for the passion and dedication he’s shown to achieve this for Teesside. I’ve worked alongside Ben for many years and seen what a great champion and ambassador he is for the region.”

Middlesbrough and Hartlepool Mayoral Development Corporations are set to be the first two areas put forward by the Tees Valley Mayor and will be up and running by the end of the year. Investment zones aim to turbocharge development, investment and job creation by applying similar tax incentives for businesses to those found in Freeports.

Under new proposals for new ratepayers within the zones, it is understood that 50 per cent will go to local authorities and 50 per cent will be retained by the mayor to reinvest in projects that will boost the region.

Changes to capital allowance rules and employers’ national insurance contributions will also increase private sector investment into these areas as they benefit from the reduced costs.

This was posted in Bdaily's Members' News section by Emma Kilmurray .