Wilfred Aspinall is a member of the Hitchin Conservative Association and a former Chairman of the Forum in the European Parliament for Construction and Energy
Another opportunity for a Conservative policy to be given prominence is the Investment Zone Initiative to develop growth in our economy across the country. We must be reminded that local initiative contributes to actual growth in our economy, showing the way forward through Levelling-Up.
We have to take every opening to create growth. That means involving every aspect of our society. Businesses (both large and small), research, and the development of technology, together can create emerging hubs of excellence.
We are the world’s sixth-largest economy. To maintain that position and be influential on the world stage we cannot afford to stand still. A lot is going on out there and it has to be harnessed by providing incentives and the means to get finance. How many times have we heard excellent innovative ideas being ignored (and then going abroad) rather than encouraged in Britain? Banks require certainty and the Incentive Zone projects will be one way to provide that guarantee.
In different parts of the country, we should encourage local councils to participate, and incentivise local businesses, organisations, and trade unions within these Zones to offer a vision of future prosperity. Get the message across to the electorate that we mean what we say: that we intend to have growth in our economy in order to provide a better quality of life for everyone.
Prosperity will not come about randomly. It does not grow on a money tree. It will not happen unless we work hard, productivity improves, and new ideas are given the green light. To go further, we must take on board what these Investment Zones can do.
Each Investment Zone will offer generous, targeted, and time-limited tax cuts for businesses, backing them to increase productivity and create new jobs. This could encourage investment in new shopping centres, restaurants, apartments, and offices – creating thriving new communities. They could direct inward investment to develop research and development hubs and create Artificial Intelligence activity – the route to the prosperity of tomorrow.
These areas will also benefit from further liberalised planning rules to release more land for housing and commercial development, and reforms to increase the speed of delivering development. It will include reforms to environmental regulation to meet the objective of net zero emissions and see streamlined local and national planning policies. This include removing height restrictions on development, so that Investment Zones can bring forward more building – including housing and commercial sites – together with infrastructure projects at the pace needed to boost growth.
Time-consuming negotiations between councils and developers for each project over affordable housing contributions will be scrapped. This will be replaced with a set percentage of affordable homes, whilst ensuring communities get the infrastructure they want and need. The Government has laid out more of its objectives here.
This system of encouraging potential growth in the economy appears to have been abandoned on an extended basis due to a lack of local interest. Councillors are concerned that their constituents may not approve. In addition, there is the stifling culture of NIMBYism. In my view, this is a minority point of view, and not that of the silent majority. After this last local elections, Conservative councillors can afford to be more ambitious and actively promote growth initiatives using both private and public finance
The scheme currently involves large combined regional authorities. However, the idea could be expanded to cover large County Council and Unitary areas, which would conform to the criteria set out above. In some areas, County Council elections will take place in May 2025 and therefore Conservative candidates should be ambitious in encouraging inward investment. It is essential to improve the economic growth of the whole nation but much of that growth will come from local initiatives. This will emphasise the Levelling Up Process
We should widen the remit of where Investment Zones can be established.
Here we have another good idea thwarted by local inactivity and perhaps lack of any entrepreneurial instruction to council officers. Investment Zones should be recognised as an added value for the area as they create business initiatives. But they break the local council orthodoxy simply because they have never come across this type of scheme in their planning experience. Political stagnation occurs where councillors do not understand what the scheme can bring to their area
Perhaps local district authorities do not have the expertise nor vision to move forward. As such, the Government does not trust that local authorities can deliver. The initial call for tenders had a very poor response. Lessons can be learnt from that. Indeed, in some cases, the call for tenders was at short notice.
To encourage greater inward investment to any area would best be managed by a competent national and regional authority that deals with the complexity entailed and is aimed at resolving problems, giving guidance, and providing advice that acts against stifling local restraint.
Unitary Council and County Council structures might be the best applicants. Conservative Councillors should take up the challenge.
It will undoubtedly mean a change in policy orthodoxy. More detailed analysis will need to be undertaken. But, if all this is carried out, it will bring prosperity and growth to many areas of the country.
