Economy minister calls on UK Government to support new Investment Zone in northeast Wales

Wales’ economy minister has called on the UK Government’s support for the creation of a new Investment Zone in northeast Wales.

A collaborative bid between Wrexham and Flintshire Councils – along with politicians and major stakeholders in the two counties – is underway to establish an Investment Zone which could help bring substantial funding to the area.

Such zones already exist in some parts of England where £80 million in funding for each area will be used for innovation, infrastructure and skills and training projects in the sectors being targeted. ‌

In the summer south Yorkshire was named as the UK’s first Investment Zone, with the UK Government stating that communities in the region could benefit from thousands of new jobs and £1.2 billion of investment​.‌‌​​​‌‍‌​‌​‌‌‌​‍‌​‌​‌‌​​‍‌​​‌‌‌‌​‍‌​​​​‌‌​‍‌​‌​‌​‌‌‍‌​​‌​‌‌‌‍‌​​‌‌​‌​‍‌​​​​‌‌​‍‌​‌‌‌‌‌​‍‌​​​‌‌​‌‍‌​​‌‌​‌​‍‌​‌​‌​‌‌‍‌​​‌​‌‌‌‍‌​​‌​‌‌​‍‌​​‌‌​‌​‍‌​​​‌​​‌‍‌​​‌‌​‌​‍‌​​​‌‌​​

According to the UK Government, Investment Zones will help to drive economic growth that will be “transformational for towns and cities across the country” by creating jobs, delivering new homes and spreading opportunity.

They could also benefit from tax incentives over the next 10 years, such as reliefs on business rates, stamp duty land tax and employer national insurance contribution.

Investment Zones are open to all, however the government “will set a high bar for establishing them, honing in on areas where they will have the greatest impact on growth and housing supply.”

Speaking at a press conference this morning Wales Economy Minister, Vaughan Gething, called on the UK Government to support plans to establish Investment Zones in northeast Wales and southeast Wales.

Mr Gething said: “At such a difficult time I’m also conscious of the Chancellor’s Autumn Statement that is fast approaching.

“The UK government needs to decide soon on the support that it will provide to Investment Zones in Wales.

“High potential clusters can offer the opportunity for growth in high quality jobs and private sector investment, as well as opportunity to improve productivity and skills in the longer term.

“The sectors will be entitled to the path to stronger economic growth in Wales and the UK as a whole.

“Welsh ministers have met to discuss proposals on a number of occasions that have been in development for some time

“Based on the analysis of opportunities for growth our view is that there is a case for two Investment Zones in Wales, one in south east Wales, and one in north east Wales covering Flintshire and Wrexham.

“Each would reflect the specific strength and existing customers in each region which amongst others includes compound semiconductors in southeast Wales and high value advanced manufacturing in northeast Wales.

“The UK government will now need to decide whether to commit to this investment in Wales.”

However Mr Gething added that the UK government needs to provide wider support to “unlock investment opportunities” across Wales.

The minister said: “Let me be clear – identifying potential investment zones against specific criteria is by no means a reflection on the economic opportunities or the need for ambitious investment in other parts of Wales.

“It remains the Welsh Government’s firm view that a comprehensive UK industrial strategy should be directed at these opportunities.

“This is the model backed by the fiscal firepower of the UK government that will provide the confidence needed to unlock investment in more secure businesses and better jobs.

“As with free ports in Wales, we want to make sure investments contribute to our net zero ambitions and the promotion of fair work, including trade union access.

“We will not accept the dilution of workers rights within Investment Zones. That is one of the key tests of principle that this must add to our economic mission.”