Glasgow City Region welcomes designation of new Investment Zone Tax Site
Glasgow City Region has welcomed new financial powers which can unlock massive investment opportunities and drive jobs and growth.
Hailing the newly designated tax site as a major step towards empowering Metropolitan Glasgow, City Region Cabinet Chair and leader of Glasgow City Council Susan Aitken said the move means tens of millions of pounds would become available for investment in new high-growth sectors.
Both the UK and Scottish Governments have confirmed the tax site at the Advanced Manufacturing Innovation District (AMIDS) and Glasgow Airport, both of which form part of the City Region’s £190 million Investment Zone.
The new tax site will introduce a range of tax reliefs which will incentivise businesses within the advanced manufacturing sector to locate to the Investment Zone.
Importantly additional benefits to the local economy of up to £162 million will also come through the retention of additional non-domestic rates generated within the entire investment zone over 25 years*.
Normally, business rates paid by local companies are collected by councils and then transferred to the Scottish Government. Under the new tax site status, the money will be retained by Glasgow City Region and reinvested into advanced manufacturing sector priorities, supporting local businesses and skills across the whole of the City Region.
Susan Aitken, Chair of the Glasgow City Region Cabinet and Leader of Glasgow City Council said:
“This move is a major milestone, both for the development of our Investment Zone and for the empowerment of Glasgow City Region.
“The ability to retain the business rates raised in the zone means we can reinvest millions into supporting new high-growth sectors, attract more skilled jobs and boost the regional economy so that everyone benefits.
“The Tax Site is exactly the type of financial lever we’ve been calling for to help unlock the opportunities for growth and equity across the City Region. I’m delighted that both the Scottish and UK Governments have taken this early step in responding to our ambitions for, and commitment to, Metropolitan Glasgow.”
The tax site spans more than 112 hectares and includes land at AMIDS, Glasgow Airport, Abbotsinch, Airside North, and Campsie Drive.
Glasgow’s Investment Zone is being shaped to boost the advanced manufacturing sector, particularly Space, Semiconductors and Maritime, following in-depth analysis by the Region’s Intelligence Hub to identify the sectors of the local economy which offer the best opportunity for growth.
It is expected to generate around £300 million of initial private sector investment and to support 7,000 – 10,000 jobs.
The programme will feature six ambitious projects; the dedicated tax site; and supporting initiatives on skills, business support and an innovation investment fund which will ensure the benefits of the Investment Zone are spread across the entire Region and provide long-term resilience of jobs and local supply-chains for people and businesses.
A short film overview on the Glasgow City Region Investment Zone is available to view here
Renfrewshire Council Leader Iain Nicolson said:
“The new tax site will make the Advanced Manufacturing Innovation District Scotland (AMIDS) even more attractive to businesses considering locating here as, not only will they be able to collaborate with sector-leading organisations, access a state-of-the-art district heating network, and make use of unrivalled transport links, they will now have significant financial incentives too.
“AMIDS is already home to world leading organisations in the advanced manufacturing sector and the tax site will only invite more to join them — bringing new jobs, investment and growth to our local economy and unlocking significant opportunities for our communities, businesses and future workforce.”
Kam Jandu, CEO of AGS Airports said:
“Securing tax site status as part of the Glasgow City Region Investment Zone is a hugely significant moment for Glasgow Airport and the wider region. It accelerates our ambition to develop a Glasgow AirportCity – a hub of precision engineering and advanced manufacturing with significant apprenticeship and upskilling programmes forecast to help create 2,300 skilled jobs and £205 million in annual GVA.
The airport already delivers major value to the Glasgow City Region and the Scottish economies, and this announcement strengthens our role as a driver of jobs, growth and connectivity. Combined with AviAlliance’s £350 million investment, including Glasgow’s Terminal Transformation plans, the tax site provides the certainty needed to attract investment and support long-term sustainable growth.”
Jonathan Athow, HMRC Director General for Customer Strategy and Tax Design, said:
“Investment Zones across the UK are creating thriving business hubs centred around growth, highly skilled jobs and benefitting the local communities.
“The tax sites can offer real benefits and tax reliefs to eligible businesses – helping them grow and invest in their future.”
Notes
Eligible businesses located within designated tax sites can access a range of reliefs, including relief on Land and Buildings transaction tax (LBTT), Non-Domestic Rates (NDR), enhanced capital allowance, enhanced structures and buildings allowance and employer national insurance contributions, alongside wider support with planning, infrastructure, innovation and skills.
* The Investment Zone includes one tax site and three designated locations for the retention of non-domestic rates.
One of these is within the tax site. Another is located in North Lanarkshire around Euro Central and the third site is spread across areas of the Clyde Corridor within Glasgow and South Lanarkshire Council areas.