Suffolk in talks with government to become low-tax investment zone

Suffolk County Council has confirmed it is one of 40 councils invited by Number 10 to take part in the first wave of discussions surrounding the establishment of 'investment zones'.

Under new plans being drawn up by Downing Street, businesses within these zones will see low taxes and fewer regulations.

It is understood the government is considering the slashing of personal tax - which includes income tax and national insurance contributions - for those working in the zones.

It is believed the zones will eclipse the existing 'freeport' programme which involves tax reliefs, customs advantages and looser planning restrictions.

The Port of Felixstowe is set to become part of Freeport East under current government plans (Image: 2021 Getty Images)

Located in Felixstowe, Harwich and Stowmarket, it is estimated that Freeport East will secure up to £650million of investment for the region and create 13,500 new jobs.

Talking about its involvement in the programme, a spokesman for Suffolk County Council said: "We were contacted by government regarding early discussions on Investment Zones, and we have agreed to be considered to take part in the first wave of these conversations.

"There has been no further activity at this very early stage."

The plans are expected to announced on Friday as part of a 'mini-budget' drawn up by Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng.

Speaking during the Tory leadership race in August, Ms Truss said she wanted new low-tax, light regulation investment zones to spur economic growth.

However, plans for the investment zones will also see areas have fewer environmental restrictions, which could prompt a backlash from local communities over concerns about green spaces.

Speaking on this, Green Party councillor and leader of the opposition at Suffolk County Council, Andrew Stringer, said: "At the moment, environmental regulation is not good enough.

"So why are we looking at loosening the rules for the sake of economic growth?

Green councillor Andrew Stringer (Image: Archant)

"This is not the answer. We should be looking at growing our local businesses, rather than allowing those who want a cheaper, dirtier deal to come in."

Speaking on the project's approval in 2021, Freeport East acting chairman George Kieffer, said: "It will work closely together with the private sector as well as education institutions to create these opportunities through innovation and investment.

"Following designation, businesses investing in the Freeport’s tax sites will be able to benefit from a number of tax reliefs.

“The UK Freeports policy is designed to encourage businesses from around the world to create new hubs of global trade that will transform economic prospects and job opportunities for local communities."