Prime Minister Keir Starmer confirms project bringing thousands of jobs to East Midlands

The Prime Minister has described a project that could create thousands of jobs in the East Midlands as "really important" and says new details will be set out in days. The East Midlands was announced in March 2023 as one of 12 areas across the country that would host an investment zone.

Investment zones are specific geographic areas that have their own tax and regulatory rules to try and boost economic growth. These special rules could include looser planning regulations, lower business rates and lower stamp duty.

The previous Conservative government made the initial announcement, but Keir Starmer has now confirmed his commitment to the project and says Chancellor Rachel Reeves will include new details in the budget on Wednesday (October 30). Speaking to broadcasters from a meeting of Commonwealth leaders in Samoa, the Prime Minister said the "really important" investment zone will aim to boost the high-tech green industry.

Sir Keir said: "These zones attract investment, and they're measured in tens of thousands of well-paid jobs, so this is really good news... I didn't want to take the sort of ideological view that just because they're introduced by the last government, we would sort of stand them down."

Claire Ward, Labour's East Midlands Mayor, welcomed the news by saying: "I'm delighted the government has recognised the potential for our region to lead the country in green industry growth. The East Midlands Investment Zone will help us turbocharge our economy, attracting major investment and creating opportunities for businesses and residents and thousands of high-quality new jobs and apprenticeships for local people.

"As a combined authority we can work at a regional level to deliver opportunities like this across the East Midlands and make this the best region in the country to live, work and learn." The previous government said each investment zone would be backed with £80 million of funding over five years.

The investment zones are similar to freeports, one of which is also being hosted in the East Midlands. A freeport is a defined geographical area containing sites which can offer businesses major tax discounts compared to what they would normally be charged.

The freeports are similar in design to investment zones, but there are differences in terms of location and the tax benefits to businesses. The East Midlands Freeport zone, the only inland freeport in the UK, contains three tax sites which are fixed and set out in law.

They include its primary port at the East Midlands Airport and Gateway Cluster, land at Ratcliffe-on-Soar around the closed power station and the East Midlands Intermodal Park in Derbyshire, near Toyota's major manufacturing plant. Activity has already included parts of the SEGRO Logistics Park near the East Midlands Airport, a 700-acre development of logistics accommodation that gives businesses ranging from Amazon to DHL direct access to a rail freight terminal.