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Sept 2022

Last Updated: 23/09/2022

Business

Harrogate district planning rules could be 'radically streamlined'

by John Plummer

| 23 Sept, 2022

North Yorkshire County Council is in talks with the government about becoming an investment zone — which could lead to major tax breaks for businesses and remove restrictions on building.

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Building houses in the west of Harrogate.

Businesses in the Harrogate district could receive major tax cuts and fewer restrictions on building as part of a government announcement today.

Ministers revealed North Yorkshire County Council is one of 38 local authorities it is talking to about becoming investment zones.

The government has said the zones will "will drive growth and unlock housing across the UK by lowering taxes and liberalising planning frameworks".

However, a union has warned they could lead to poorer public services and a race to the bottom on employment terms.

The government has written to local leaders in every part of England inviting them to begin discussions on setting up zones in their area. Conservative-controlled North Yorkshire County Council was today confirmed as one of 38 that are keen to be involved.

The government has said the zones will receive lower taxes and 'radically streamlined' planning rules.

Businesses will get 100% business rates relief on newly occupied and expanded premises, full stamp duty land tax relief on land bought for commercial or residential development and a zero rate for employer national insurance contributions on new employee earnings up to £50,270 per year.

To incentivise investment, there will be a 100% first year enhanced capital allowance relief for plant and machinery used within designated sites and accelerated enhanced structures and buildings allowance relief of 20% per year.

Chancellor Kwasi Kwarteng said:

“That is an unprecedented set of tax incentives for businesses to invest, to build and to create jobs right across the country.

"If we really want to level up, we need to unleash the power of the private sector.”

'Race to the bottom'

But the zones, which build on the government's freeports initiative, was criticised by the North Yorkshire branch of Unison.

A spokesman for the union said:

"Our nervousness, which is probably shared by residents of North Yorkshire, is around a race to the bottom by deregulation."

The spokesman said the zones set local authorities against each other and would be bad for public services, as well as ushering in a "lower standard of planning".

He also warned it could lead to businesses in non-zone areas cutting wages and standards to compete. He added:

"I don’t blame local authorities for applying but what we need from government is a strategy that goes for a high skill, high wage economy rather than pitting one local authority against another."

North Yorkshire County Council has been approached for comment.