Chancellor Jeremey Hunt is poised to reveal twelve low-tax zones in a bid to drive up investment in areas outside of London in this Budget tomorrow.
Each zone will receive £80mln of public support over five years, alongside gaining tax incentives such as lower business rates or employer national insurance, according to Financial Times sources.
The zones will centre around technology, creative industries, life sciences, advanced manufacturing and green industries, set to be placed in eight areas in England and four between Scotland, Northern Ireland and Wales.
In total, the scheme will cost nearly £1bn, aiming to upskill workers and provide specialist support for businesses, many of which have called for further public funding in recent months.
Jaguar Land Rover, owned by Tata Motors Ltd, claimed this month it would look to build its new electric vehicle factory outside of the UK if the government did not offer support, having earmarked a site in Somerset.
Battery start-up Britishvolt fell into administration in January, meanwhile, after failing to secure public funding for its planned £3.8bn gigafactory in Northumberland but was later revived by Australian firm Recharge Industries.
Calls come after the US and EU have introduced huge schemes to incentivise private investment in clean tech through subsidies and tax breaks.
Former prime minister Liz Truss had raised plans for similar investment zones during her short tenure, though she eyed as many as 200 new sites, estimated to cost around £12bn.
Hunt’s scheme will partially bring the plan to life, operating alongside ‘freeports’ at twelve UK airports and harbours, aimed at boosting similar growth.