Lucky dozen enterprise hubs to be targeted with shots in arm as geographical scattergun tactics come under fire

LOW-TAX hubs will be created outside London with almost £1billion funding to kickstart economic growth.

There will be eight in England and four across Scotland, Wales and Northern Ireland. Each will be able to secure grants and tax cuts worth £80million for five years.

The Government will negotiate with authorities in the West and East Midlands, Greater Manchester, Liverpool, the North East, South and West Yorkshire, and Tees Valley to pick the sites. The plan was welcomed by businesses, but it was also criticised for creating a cumbersome patchwork of areas with various tax breaks and perks, and for ignoring swathes of the country.

Darren Jones, chairman of the committee of MPS which oversee the business department, said: “A fragmented approach to local and regional economic growth ownership continues to grow, with the addition of investment zones on top of existing enterprise areas, enterprise zones, economic partnerships, city deals, combined authorities, power houses and freeports.”

The help will be targeted where growth has been slower, helping newer areas of the economy such as green industries, digital technologies, life sciences, creative industries and advanced manufacturing.

Martin Bysh, co-founder of online shop logistics firm Huboo, said basing it on geography was out of touch for a plan to modernise the economy.

He said: “Government assistance for growing businesses should be aimed at the entrepreneurs best able to take advantage of it, regardless of location. Creating investment zones is an arbitrary approach that will inevitably fail to support thousands of entrepreneurs who are building high-potential businesses from their kitchen tables.”

In addition, £60million will help public swimming pools facing the high cost of heating. The funding can be used to make them energy efficient.

More than £100million will go to charities and community organisations in England. This will be for those most at risk, due to increased demand and higher costs, as well as measures which can cut energy bills. In addition, £10million for the next two years will be set aside for suicide prevention charities and groups in England.