More detail on Truss’ plan for new ‘Bournvilles’ set to be announced

Kwasi Kwarteng will reportedly on Friday announce plans for a number of low-tax investment zones, which would see planning rules and other regulations eased to boost development.

kwasi kwarteng

The chancellor is widely expected to include plans for the new zones in Friday’s tax-cutting “mini-budget”.

According to the Guardian, planning regulations will be relaxed in up to 12 places earmarked investment zone status. The West Midlands, the Thames estuary, the Tees Valley, West Yorkshire and Norfolk are among the places where the zones may be sited.

The Sunday Times reported the areas awarded the new status will benefit from “a reduction in planning restrictions and environmental regulations.”

Liz Truss in the summer pledged to “identify sites ripe for transformation across the country through lower taxes, reduced planning restrictions and red tape “ and said the move would create “new hubs for innovation and enterprise” in the spirit of Victorian model villages such as Bournville in Birmingham and Saltaire, in Yorkshire.

According to reports at the time, the zones would have areas focused on commercial, residential or industrial development and a streamlined residential planning process on the periphery.

It is not clear what form the reduced planning regulation would take. The Levelling Up and Regeneration Bill is currently going through parliament, so the government could amend that rather than table fresh legislation to change planning law.

The Johnson government’s original plan to simplify the planning system, including areas which would benefit from automatic permission in principle, was watered down after concerns over a perceived lack of local input in decision-making was blamed for the Chesham & Amersham by-election loss in June 2021.

See also>> Truss vows to remove planning constraints and create more Bournvilles

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The Treasury has been approached for comment.