Huge areas of England could be bolstered against the economic crisis with new ‘low-tax zones’.

Deprived towns and cities such as Blackpool, Leicester, Bedford and Stoke-on-Trent could benefit as a result.

Further details of the plan were unveiled this morning by chancellor Kwasi Kwarteng during his mini-budget.

He said: ‘To support growth right across the country, we need to go further, with targeted action in local areas.

‘So, today, I can announce the creation of new investment zones.

‘We will liberalise planning rules in specified agreed sites, releasing land and accelerating development.

‘We will cut taxes. For businesses in designated tax sites, for 10 years, there will be accelerated tax reliefs for structures and buildings. And 100% tax relief on qualifying investments in plant and machinery.’

Blackpool is among the areas earmarked under the new Government plans (Picture: Getty Images)

He added the Government was in early discussions with regions across England to establish the new zones, as well as the devolved administrations in Scotland, Wales and Northern Ireland.

‘If we really want to level up, we have to unleash the power of the private sector,’ Mr Kwarteng added.

The Chancellor has also pledged to ‘turn the vicious cycle of stagnation into a virtuous cycle of growth’ as he sets out to tackle the economic ramifications of the living cost crisis.

It comes after the Bank of England warned the country had already fallen into a recession, as interest hikes hiked to 2.25 from 1.75.

The 38 areas in discussion to become an investment zone:

  • Blackpool Council
  • Bedford Borough Council
  • Central Bedfordshire Council
  • Cheshire West and Chester Council
  • Cornwall Council
  • Cumbria County Council
  • Derbyshire County Council
  • Dorset Council
  • East Riding of Yorkshire Council
  • Essex County Council
  • Greater London Authority
  • Gloucestershire County Council
  • Greater Manchester Combined Authority
  • Hull City Council
  • Kent County Council
  • Lancashire County Council
  • Leicestershire County Council
  • Liverpool City Region
  • North East Lincolnshire Council
  • North Lincolnshire Council
  • Norfolk County Council
  • North of Tyne Combined Authority
  • North Yorkshire County Council
  • Nottinghamshire County Council
  • Plymouth City Council
  • Somerset County Council
  • Southampton City Council
  • Southend-on-Sea City Council
  • Staffordshire County Council
  • Stoke-on-Trent City Council
  • Suffolk County Council
  • Sunderland City Council
  • South Yorkshire Combined Authority
  • Tees Valley Combined Authority
  • Warwickshire County Council
  • West of England Combined Authority
  • West Midlands Combined Authority
  • West Yorkshire Combined Authority

Household energy bills will be frozen at £2,500 this winter, it was also announced this morning.

He told the Commons: ‘People will have seen the horrors of Putin’s illegal invasion of Ukraine. They will have heard reports that their already-expensive energy bills could reach as high as £6,500 next year. Mr Speaker, we were never going to let this happen.’

Mr Kwarteng added: ‘People need to know that help is coming. And help is indeed coming.’

Existing plans to give each home £400 to cope with skyrocketing prices will also remain in place, he confirmed.

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