West Midlands Mayor tells Rishi Sunak to press ahead with investment zones

The zones, which were launched by Liz Truss during her fleeting administration, have been placed under review by Levelling Up Secretary Michael Gove over environmental concerns.

The decision has sparked concerns among political leaders in the West Midlands, who submitted bids for several investment zones, including four in the Black Country and one in Staffordshire.

Under the scheme, specified areas would benefit from low taxes for businesses and relaxed planning laws in a bid to drive growth.

West Midlands Mayor Andy Street has described the zones as being vital to the region's economy. He has called on Mr Sunak to make them a "key component" of his levelling up agenda.

Mr Street told the Star: "If the Government are reviewing the previous administration’s investment zones proposals, I would add my voice to those who wish them to press ahead.

"The Cameron/Osborne era enterprise zones – in many ways the precursor to the investment zones talked about today – were genuinely impactful here in our region.

"From i54 in Wolverhampton to the changes around Centenary Square in Birmingham city centre, we were able to attract new investment, welcome new businesses and plan for the long term thanks to the decision to enable us to retain business rates over a 25-year time frame.

"If Rishi Sunak is going to double down on levelling up, I would urge him to make investment zones a key component of this agenda – not least given his track record of championing freeports.

"Even if the Government decides to change the national strategy, we would still advocate for investment zones via our trailblazer devolution deal negotiations with Government – such is our belief in their transformative power."

The trailblazer devolution deal, which was negotiated with Boris Johnson and backed by Liz Truss, would see the region given greater powers over areas including housing and post-16 education.

Asked if the zones were going ahead, Mr Gove said: "I'm reviewing them.

"We need to make sure that any change that we make is one which of course helps to support economic growth and good jobs for people, but also one of the concerns raised about investment zones was the impact on the environment.

"I've been very clear and the Prime Minister has been very clear that under no circumstances will we weaken environmental protections."