Essex to become 'investment zone' under new government plans
Chancellor Kwasi Kwarteng has announced the move as part of plans to drive economic growth
Essex is set to become a special 'investment zone' under new government plans to drive growth.
In today's 'mini budget', Chancellor Kwasi Kwarteng announced 38 local authorities across the country would be invited to establish the zones on designated sites.
Essex County Council is included.
Businesses setting up in the zones would be offered lower tax rates, while planning rules would also be relaxed to enable more housing and commercial development.
It's a similar idea to the government's previous idea of setting up 'Freeports', which provide tax incentives to businesses which choose to relocate.
One of those freeports is already located in the East of England, split between the ports of Felixstowe and Harwich and the Gateway 14 business park, which is being built near Stowmarket in Suffolk.
In setting up the investment zones, the government is hoping to encourage businesses to plough more money into the economy, thereby driving economic growth.
Chancellor Kwasi Kwarteng said: "For too long in this country, we have indulged in a fight over redistribution. Now, we need to focus on growth, not just how we tax and spend.
"We won't apologise for managing the economy in a way that increases prosperity and living standards. Our entire focus is on making Britain more globally competitive - not losing out to our competitors abroad.
"The Prime Minister promised we would be a tax-cutting government. Today, we have cut stamp duty, we have allowed businesses to keep more of their own money to invest, to innovate, and to grow..."
"We promised to prioritise growth. We promised a new approach for a new era. We promised to release the enormous potential of this country. Our growth plan has delivered all those promises and more."
Critics of the new investment zones and Freeports fear they will have negligible impact on economic growth and would instead deprive the Treasury of much needed funding for public services.
Pat McFadden, shadow chief secretary to the Treasury, said: "The Conservatives don't have a new plan for economic growth. They have simply moved from levelling up to trickle down and that has not worked in the past.
"Their choice to fund all of this through borrowing and not attempt to fund even a proportion of it through a windfall tax on the energy companies making the most from the current crisis increases risk and leaves British taxpayers paying more for longer.
"They are doing all of this at a time when inflation is high and interest and mortgage rates are already on the rise."