Scotland could become home to five low-tax investment zones intended to attract billions of pounds of investment and generate tens of thousands of jobs, according to the Sunday Times.

The newspaper reports that a joint UK and Scottish government announcement is imminent on which two parts of Scotland have succeeded in their bid to become green freeports, benefiting from tax breaks to support trade.

Green freeport status for the north-east – Aberdeen and Peterhead – would be expected to create 32,000 jobs and provide an economic boost worth £8.5 billion over the next decade.

But it has emerged that the two winners could be rebadged and beefed up as the first of the new investment zones planned by prime minister Liz Truss, with the other bidders following soon after.

Because the bids are at an advanced stage some UK government sources are hopeful that these could be set up in Scotland ahead of England.

The investment zones, which will have reduced planning restrictions, have already been broached in talks between the UK and Scottish governments.

Deputy first minister John Swinney said: “They have to be the right fit for Scotland.”

The UK government says investment zones will benefit from lower taxes with businesses in designated sites benefitting from time-limited tax benefits, and accelerated development where designated development sites can release more land for housing and commercial development, and to support accelerated development.

The Westminster government said it was in discussions with 38 local authorities to establish investment zones in England.

These would be hubs for growth, encouraging investment in new shopping centres, restaurants, apartments and offices, and creating thriving new communities.

However, a spokeswoman for the SNP-Green government at Holyrood said on Sunday that it was focussed on the current freeport process.

“The Scottish Government’s priority remains the rapid conclusion of the green ports competitive process, following the rigorous procedures set out in the joint prospectus published in March,” she said.

“We hope to announce the winning bids jointly with the UK Government soon.”


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