GMCA firms up locations for special tax status
Regeneration schemes including ID Manchester, Salford Crescent, and Mayfield are in line to benefit from 100% business rate retention as part of the city region’s trailblazer devolution deal.
The Greater Manchester Combined Authority has picked five locations totalling almost 3,000 acres to benefit from special tax status, according to a report.
Two of the five locations are investment zones and will benefit from £160m of government funding over the next 10 years to support the advanced manufacturing and materials sector, as well as 100% business rate retention for the next 25 years.
The other three sites have been designated as growth zones. Business rates paid in these areas will be retained locally, as set out in the devolution deal, which gives Greater Manchester more fiscal freedom.
The two investment zone sites are:
Manchester “Smile” – 516 acres across Manchester and Salford stretching from Mayfield in the east to the University of Salford in the west and incorporating ID Manchester.
Northern Gateway – 958 acres across Rochdale and Bury that forms part of the wider Atom Valley mayoral development zone, which is capable of delivering 17m sq ft of employment space.
The two growth zones are:
Manchester CC North & East – This area covers sites in Manchester and Salford and totals 355 acres including the Etihad Campus and the former Central Retail Park off Great Ancoats Street
Salford Quays and Trafford Wharfside – 551 acres spanning Salford and Trafford. This allocation includes both sporting Old Traffords as well as MediaCity.
Trafford Park – A 570-acre chunk of the industrial estate.
GMCA was contacted for comment.
100% retention but without in the additional investment in the growth zones, rather than exemption for individual businesses.
By Local Interest
Surely such a tax status would be better employed in the poorer parts of our conurbation (Bolton, Oldham and Tameside) to encourage investment, rather than the usual trio of MCR, the more affluent bits of Salford and Trafford where investment always seems to go?
Good to see Atom Valley being promoted though.
By Depressed Latic
I’m assuming that the 100% retention means that the additional money will be recycled into future business and regeneration opportunities?
By Anonymous
100% retention over 25 years will enable monies to be borrowed against that future business rates income once the growth in the business base is stable and predictable. My reading of this approach is that the GMCA have designated parts of the city region where the growth in the business rates base will deliver the maximum financial impact – this can then be borrowed against and invested anywhere in GM. Birmingham have successfully employed this model with their City Centre Enterprise Zone.
By Anonymous
@ Depressed Latic This strategy ensures a economically stronger Manchester will benefit the other parts of the conurbations with the spill over effect. This happens in the South east.
By Anonymous
So MUFC, MCFC, LCC, BBC and most of Trafford Park businesses (which includes many large corporations) will now be exempt from paying any business rates because they’re in a growth zone? Given they are are longstanding occupants, why should they not have to pay business rates?
By Mikey