Kwarteng unveils incentives to boost economic growth

The Annual Investment Allowance was set to revert to £200,000 in March 2023 but now sits at £1m as part of measures set out today (Sept 23, 2022) in Kwarteng’s Growth Plan.

These include establishing so-called investment zones in England, planning reforms to get infrastructure projects moving more quickly, and the publication of a list of infrastructure projects that will be prioritised for acceleration in sectors including transport, energy, and telecoms.

Speaking in parliament, Kwarteng said: “Our planning system for major infrastructure is too slow and fragmented. The time it takes to get consent for nationally significant projects is getting slower, not quicker, while our international competitors forge ahead. We have to end this. We can announce that in the coming months, we will bring forward a new Bill to unpick the complex patchwork of planning restrictions and EU-derived laws that constrain our growth.”

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Kwarteng added that he will ‘liberalise’ planning rules in the new investment zones, which are being established to encourage investment by businesses who will avoid stamp duty on purchases of land and buildings for commercial or new residential development. Further benefits include zero business rates on newly occupied business premises, and no national insurance contribution from employers whose new employees earn up to £50,000.