Investment Zones: expression of interest frequently asked questions
Updated 11 October 2022
Applies to England
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Background
Investment Zones in England will be chosen following an Expression of Interest (EOI) process open to Mayoral Combined Authorities (MCAs), or, where a Mayoral Combined Authority does not exist to Upper Tier Local Authorities (UTLAs), or Freeports with the backing of relevant MCAs or UTLAs. The EOI will be submitted via an online portal which opened on 2 October 2022 and closes at 11:59am on 14 October 2022.
The expression of interest process
1. What is an Investment Zone?
Investment Zones are designated sites where businesses will benefit from time-limited tax incentives and streamlined planning rules to deliver investment, create jobs and build the homes that communities need.
2. Who can apply?
Mayoral Combined Authorities and, where these don’t exist, Upper Tier Local Authorities or Unitary Authorities will be able to apply on behalf of their area. Existing Freeports are also able to apply.
3. How do I apply?
The EOI questions were published with the EOI guidance on 2 October and the online portal to receive applications is now open. All applicants must apply using the template provided via the online portal, ensuring that bids include details on how sites will utilise both tax and planning deregulation to stimulate economic growth.
4. What happens in areas where a devolution deal has been agreed but the MCA/MCCA is not yet established?
Until an MCA/MCCA is in place, the relevant UTLA or unitary authorities should apply for their area.
5. What relationship does this have with Enterprise Zones?
If your site is in an Enterprise Zone, please include this in the wider strategic considerations section of the EOI, as with any other local economic scheme.
6. When will the EOI process close?
All applicants must submit their EOI and supporting documents by 11:59am 14 October 2022.
7. As a submitting authority what form should I fill out and where can I find it?
The finalised excel EOI form, accessible to places who have pre-registered, has been published online - with minor changes from a Word document previously published. See details of the questions and guidance.
8. How many Investment Zones are you intending to select?
The government will set a high bar for establishing Investment Zones. The government anticipates setting up a specific number of Investment Zones across the country, where it can be demonstrated that they will have the greatest impact on growth and housing supply. They will need to demonstrate value for money, minimise displacement and bring forward new development. Investment Zones will particularly support regeneration of undeveloped and under-developed areas. The precise number of zones will depend on factors, such as their overall geographical spread and the fiscal costs of the programme, in the context of the government’s medium-term fiscal plan.
In the event of a very large number of EOIs being above the quality line, we will phase the Investment Zones taken through to detailed delivery planning – starting with bids that are most ready to deliver and have demonstrated they are likely to have the greatest economic impact.
9. Who will need to approve my EOI before submitting?
EOIs will need to be approved by the Mayoral Combined Authority, Upper Tier Local Authority, or Freeport Chief Executive and Section 73/151 officer from the submitting authority. EOIs will also need confirmation that the leader of the Local Planning Authority within which the site is located supports the site becoming an Investment Zone in principle. Where EOIs contain Investment Zone sites which sit across MCA/UTLA boundaries, areas will need to confirm this in the EOI.
In an area undergoing structural change, the submitting upper tier local authority should also have engaged with and secured the confirmation that the leader of any shadow authority (which will become the local planning authority/upper tier authority) for the area in which a site is located would be likely to agree to the Investment Zone as well.
10. What happens if two authorities dispute responsibility for a site?
As much as possible, we would encourage authorities to work collaboratively. Where this is not possible, we will consider the information provided by the authorities in their EOIs, and if required, will seek further information and guidance.
11. What is the role for Local Enterprise Partnerships (LEPs) in the process?
MCA/UTLAs must lead on developing and submitting the EOI. However, we recognise that LEPs have a unique perspective on how growth can benefit their local area – we would very much welcome the input of LEPs in the EOI process and the setting up of IZs.
12. Will I have the opportunity to reapply to be an Investment Zone if I do not submit an application during this window?
This is currently the only opportunity for authorities to apply for Investment Zones.
13. How will bids be assessed?
Bids will be subject to an overall assessment of the economic opportunity, pace of delivery, and wider strategic alignment included in the EOI, with consideration made for wider economic growth objectives and distribution of Investment Zones across England. Full details are set out in the marking guidance.
14. How does an authority ‘pass’ the EOI stage?
All applicants that pass the minimum criteria on both planning and tax deregulation will be considered for an Investment Zone. In the event of a very large number of EOIs meeting the minimum standards, and to ensure we are able to deliver at pace, we will start with bids that are most ready to deliver and have demonstrated they are likely to have the greatest economic impact.
15. Does being successful at the EOI stage mean that we will definitely have an Investment Zone?
No, confirmation will be dependent on subsequent discussions and receipt of a delivery plan that meets strategic, delivery and legal expectations.
EOIs submitted to government are ultimately dependent on the necessary legislation, and the commitments requested by government at this stage are in principle subject to confirmation of that legislation.
16. What will be the next steps for successful bidders?
Sites successful at the EOI stage will be required to develop delivery plans and conduct relevant legal assessments, including site assessments and equalities.
Delivery plans will need to confirm that sites will represent value for money for taxpayers and deliver the housing and growth objectives of the Investment Zones programme.
17. When should we expect to hear if our application has been successful?
We will work quickly, fairly and accurately to process all applications received and will issue further information to areas at the earliest possible opportunity.
18. Can I submit a joint bid with other UTLA’s?
EOIs should be on the basis of a single UTLA providing details of all the potential Investment Zone sites in their UTLA.
We want areas to consider their EOI in collaboration with other local areas and we encourage conversations between UTLA’s and other local authorities while developing their individual EOIs.
UTLA’s should not formally submit a joint EOI, but where UTLA’s feel Investment sites could be overseen under a joint governance structure, this should be referenced in the governance questions.
Investment Zone sites which sit across MCA/UTLA borders, should be included in both relevant submitting authorities EOI with the answers to the relevant questions in the EOI provided.
Freeports
19. Will Freeport sites get the same tax benefits as Investment Zones?
The EOI process gives existing Freeports the opportunity to express their interest in converting to Investment Zones. In recognition of the robust business case process that Freeport governing bodies have gone through, Freeports who only wish to apply to convert an existing Freeport tax site can complete a streamlined EOI process. If Freeports propose expansions or additions to their tax sites, this will require the full EOI. Freeports would need to remain fully committed to the Freeport programme if their proposals are successful. Freeports that do not submit an EOI will not be converted to Investment Zones and will continue through delivery as currently planned.
20. As a local authority, do I need to seek the Freeport’s permission before applying for an Investment Zone in a Freeport area?
We would expect applicants who wish to apply for an Investment Zone within a Freeport outer boundary to discuss the proposal with the relevant Freeport to make sure plans align with the Freeports overall objectives and that both programmes complement one another.