The leader of North Yorkshire County Council has defended its decision to support the government’s doomed investment zones.
The council submitted expressions of interest to create 11 zones, including three in the Harrogate district at junction 47 of the A1 near Knaresborough, business park Potter Space Ripon at junction 50 of the A1 and Harrogate Convention Centre.
The zones, which were a key policy under former Prime Minister Liz Truss’ administration, were supposed to benefit from tax incentives and liberalised planning regulations.
But some environmental groups expressed concerns about their potential impact on nature and the landscape.
Chancellor Jeremy Hunt announced in his autumn statement the scheme would be focused towards research and the council’s proposals would no longer be taken forward.
Cllr Carl Les, leader of North Yorkshire County Council, said the authority remained “committed” to economic growth in the county despite the decision.
He said:
“We understood when making our submission that the investment zones proposal was at a very early stage and that there were no guarantees.
“However, we are committed to seeking opportunities to support sustainable growth whenever possible, so we believed there was value in presenting an expression of interest relating to suitable sites around North Yorkshire. These sites were selected following discussions with colleagues in district and borough councils.
“All the sites put forward for consideration are locations that have already been earmarked for commercial development to support business growth and job creation. While the proposed benefits of investment zones may have been attractive to new businesses, we will continue to work with our partners to support economic growth across the county.
“In Harrogate, the convention centre is the subject of a bid to the government’s Levelling-Up Fund. We hope to learn the outcome of this bid shortly.”
Read more:
- Council explores move to protect Harrogate Convention Centre with limited company status
- Working group set up to steer future of Harrogate Convention Centre
- What now for Harrogate Convention Centre after investment zones dropped?
Uncertainty over Harrogate district investment zones after government ‘refocuses’ scheme
There is uncertainty over the future of planned investment zones in the Harrogate district after the government announced it will “change its approach” on the policy.
Three sites were earmarked in the district for the zones, which were a key policy under former Prime Minister Liz Truss’s administration.
The sites include junction 47 of the A1 near Knaresborough, business park Potter Space Ripon at junction 50 of the A1, and Harrogate Convention Centre.
The government said previously that the zones, which would have received liberalised planning laws and tax incentives for businesses, would support economic growth.
However, Chancellor Jeremy Hunt yesterday announced in his autumn statement that the scheme would be focused towards research.
He said:
“I will also change our approach to investment zones which will now focus on leveraging our research strengths, to help build clusters for our new growth industries.
“My right honourable friend the Levelling Up Secretary will work with mayors, devolved administrations and local partners to achieve that with the first decisions announced ahead of the spring budget.”
According to Treasury documents, the government intends to “refocus the investment zones programme” and use it to “catalyse a limited number of the highest potential knowledge-intensive growth clusters”.
The document added that, as a result, the expressions of interests submitted by councils “will therefore not be taken forward”.
The news comes after Cllr Carl Les, leader of North Yorkshire County Council, admitted on Wednesday that he did not expect the zones to progress.
Read more:
- Harrogate district planning rules could be ‘radically streamlined’
- Harrogate Convention Centre ‘could lose £250 million without investment’
- Revealed: the three Harrogate district sites that could become investment zones
The county council was named as one of 38 local authorities in talks with the government over creating investment zones back in September.
The authority then earmarked 12 commercial sites as part of an expression of interest for the scheme.
However, Cllr Les told councillors at a meeting on Wednesday that he did not expect the initiative to go any further.
He said:
Investment zones ‘won’t harm environment’, claims Andrew Jones MP“I have to say I don’t think that investment zones are going to proceed.
“The Secretary of State is reviewing them and they will not go forward.”
Harrogate and Knaresborough Conservative MP Andrew Jones has rejected claims that investment zones could harm the environment.
North Yorkshire County Council revealed last week it had submitted expressions of interest to the government to create investment zones at three Harrogate district sites.
They are Harrogate Convention Centre, junction 47 of the A1 and Potter Space Ripon, a business park at Junction 50 of the A1.
The zones will benefit from liberalised planning laws and tax incentives for businesses, which has sparked concerns from environmental groups such as the Wildlife Trusts that they will put wildlife and wild spaces at risk.
But Mr Jones told the House of Commons this week:
“These are sites where we have existing commercial activity which were already earmarked for further investment. Investment zones give us the opportunity to lever in funding from the government.
“I understand that individuals and some groups were concerned that the new investment zones would see the development of huge swathes of countryside. I would not have supported their introduction were that the case.
“But it is clear from the sites that are being brought forward that this is far from the case”
Read more:
- Revealed: the three Harrogate district sites that could become investment zones
- Andrew Jones MP launches ‘non-political’ fact-checking service
Green Party rejects Mr Jones’ claims

Paul Ko Ferrigno
But Harrogate and District Green Party prospective parliamentary candidate Paul Ko Ferrigno criticised Mr Jones’ stance.
“Like his government, Mr Jones has had 12 long years to establish his green credentials, and it is on that track record that he must be judged, not some aspirational scheme that has been rushed in so quickly that councillors have not been given time to scrutinise the detail.
“It isn’t even clear that these investment zones are needed because we haven’t been told which regulations are potentially holding schemes back.”
Business support
Lilla Bathurst, manager of Ripon Business Improvement District, backed the county council’s submission. She said:
“Whilst the Potter Space is outside the Ripon BID area, we welcome any investment into the Ripon city region.
“The potential for more businesses and employment in the area, and therefore further footfall and spend in our BID businesses, can only be a positive and we fully support Cllr Carl Les and North Yorkshire County Council in their submission.”
However, the North Yorkshire branch of Unison took a different view:
We share the concerns of @WildlifeTrusts, and our branch committee has voted unanimously to oppose #InvestmentZones and we arw asking @northyorkscc to withdraw its interest.@AJonesMP @nadams @JulianSmithUK @JulianSturdy @RishiSunak @kevinhollinrake
@ChrisGPackham https://t.co/3oHgEsdb3u
— North Yorkshire UNISON (@NYUnison) October 15, 2022
Revealed: the three Harrogate district sites that could become investment zones
North Yorkshire County Council revealed today it has selected three possible sites in the Harrogate district to become investment zones.
The sites are: junction 47 of the A1; Potter Space Ripon, a business park at Junction 50 of the A1 and Harrogate Convention Centre.
The government has said the zones, which will receive liberalised planning laws and tax incentives for businesses, will support business and economic growth.
But they have been criticised by conservation organisations because of the potential impact on wildlife.
Last month, North Yorkshire County Council was named as one of 38 local authorities in talks with the government over creating investment zones.
Today, the county council named the 12 commercial sites it had identified for possible zones in North Yorkshire.
Read more:
- Harrogate district planning rules could be ‘radically streamlined’
- Harrogate Convention Centre ‘could lose £250 million without investment’
Of the seven districts within the county, only Selby, where five sites have been identified, has more locations than the Harrogate district.

Carl Les
Carl Les, the Conservative leader of the county council, said:
“We are at a very early stage in the process, but this could be an exciting and welcome initiative that would enable us to work with the government to deliver benefits for the North Yorkshire economy.
“Following discussions with our district council colleagues, we are submitting an expression of interest. This identifies a number of sites across the county that we feel fit the criteria from government. We look forward to further negotiations with Government following our submission.”
Full list of sites in North Yorkshire
The sites identified in the expression of interest are:
- Hambleton: Dalton, at Junction 49 on the A1.
- Harrogate: Harrogate, at Junction 47 of the A1; Potter Space Ripon, at Junction 50 of the A1; Harrogate Convention Centre.
- Richmondshire: the area around A1 Junctions 52 and 53.
- Ryedale: Eden Camp East, Malton.
- Scarborough: Scarborough Business Park.
- Selby: Gascoigne Wood Rail Interchange, Olympia Park, and sites at Eggborough, Kellingley and Sherburn.
Cllr Les said:
“The sites we are putting forward for consideration are locations that have already been earmarked for commercial development to support business growth and job creation. The proposed benefits of investment zones could help to make these sites even more attractive to new businesses and accelerate development ambitions.
“We are fully aware of the need to minimise any environmental impacts, so all the sites we are putting forward have been selected in accordance with local planning and conservation policy. None are sensitive or protected sites.”
Proposed sites must meet the Government’s criteria to offer a significant economic opportunity, be ready to deliver quickly and align with the wider local strategy.
Once the government has received the expressions of interest from invited authorities, further criteria will influence site selection, including consideration of the overall geographic distribution of investment zones, the balance between residential and commercial, and urban and rural sites and the readiness to deliver.
Andrew Jones MP launches ‘non-political’ fact-checking serviceHarrogate and Knaresborough MP Andrew Jones has started posting fact-check videos on his new Instagram account.
The Conservative MP published his first video, which was about the government’s proposed new investment zones, on Friday.
North Yorkshire County Council is one of 38 local authorities in talks with the government about introducing the zones, in which businesses could benefit from lower taxes and liberalised planning rules.
The RSPB charity has labelled the zones an “unprecedented attack on nature” because of the impact they could have on wildlife.
Introducing the series, Mr Jones says fact-check Friday will be “an occasional series where we just present facts — no politics”.
He then highlights how some people are worried the zones “will mean concreting over green belt and downgraded environmental standards” but he then adds the the government “has made it clear this isn’t the case”.
The video cuts to footage of new Environment Secretary Ranil Jayawardena saying he is committed to helping farmers curate the countryside. Mr Jones then says:
“Investment zones can take derelict but previously developed sites and transfer them into thriving net zero communities.
“A good example might be the Ripon barracks site. That’s the kind of thing that we should be looking for investment zones to do.”
Mr Jones has 75 followers on Instagram and his video has so far attracted five likes.
Read more:
- Harrogate and Knaresborough MP Andrew Jones joins Instagram
- Green Party chooses man to fight Andrew Jones in Harrogate and Knaresborough
Liberal Democrats and Greens respond
David Goode, chair of Harrogate and Knaresborough Liberal Democrats, said:
“Mr Jones says in his fact-check piece to camera that he will hold the government to account. Let us not forget, he is a Conservative MP, part of the Conservative Party who run the government.
“A government that have just pushed the pound to a record low and caused mortgage chaos for thousands of families. A government that has removed the bankers’ bonus cap at a time when some people can not even afford to put the heating on. Those facts we are dealing with.
“What has Mr Jones done to hold the government to account for this botched mini-budget and its disastrous outcomes?”
Paul Ko Ferrigno, who was named as the Green Party’s prospective parliamentary candidate for Harrogate and Knaresborough last month, said:
“Mr Jones says that he intends to ensure that the government’s proposed investment zones will not lead to a deterioration in environmental protections, so I’d like to work with Mr Jones to ensure that current designated protected sites such as national parks, areas of outstanding national beauty, sites of special scientific interest, designated green belt land and buffer zones that surround world heritage sites in Yorkshire will be protected, and not sacrificed to short term economic pressures.
“The fact that these zones are not explicitly protected under the government proposals is worrying.”