New tax site designated in Glasgow as Investment zone Tax Site

Glasgow City Region’s newly designated Investment Zone Tax Site is expected to drive massive investment in advanced manufacturing and create thousands of new jobs.

The site spans more than 112 hectares and covers the Advanced Manufacturing Innovation District (AMIDS), Glasgow Airport, Abbotsinch, Airside North and Campsie Drive.

Councillor Susan Aitken, leader of Glasgow City Council and chair of the Glasgow City Region Cabinet, said: "This move is a major milestone, both for the development of our Investment Zone and for the empowerment of Glasgow City Region.

"The ability to retain the business rates raised in the zone means we can reinvest millions into supporting new high-growth sectors, attract more skilled jobs and boost the regional economy so that everyone benefits.

"The Tax Site is exactly the type of financial lever we’ve been calling for to help unlock the opportunities for growth and equity across the City Region.

"I’m delighted that both the Scottish and UK Governments have taken this early step in responding to our ambitions for, and commitment to, Metropolitan Glasgow."

Businesses within the tax site will benefit from a range of tax reliefs, making the area more attractive for investment.

The site forms part of the region’s £190m Investment Zone.

Retaining additional non-domestic rates within the zone is expected to generate up to £162m in economic benefits over the next 25 years.

Normally, business rates are collected by councils and passed to the Scottish Government, but in this case they will be kept within the region.

The Investment Zone aims to attract around £300m in initial private sector investment and create between 7,000 and 10,000 jobs.

Kam Jandu, chief executive of AGS Airports, said: "Securing tax site status as part of the Glasgow City Region Investment Zone is a hugely significant moment for Glasgow Airport and the wider region.

"It accelerates our ambition to develop a Glasgow AirportCity - a hub of precision engineering and advanced manufacturing with significant apprenticeship and upskilling programmes forecast to help create 2,300 skilled jobs and £205m in annual GVA.

"The airport already delivers major value to the Glasgow City Region and the Scottish economies, and this announcement strengthens our role as a driver of jobs, growth and connectivity.

"Combined with AviAlliance’s £350m investment, including Glasgow's Terminal Transformation plans, the tax site provides the certainty needed to attract investment and support long-term sustainable growth.”

Jonathan Athow, HMRC Director General for Customer Strategy and Tax Design, said: “Investment Zones across the UK are creating thriving business hubs centred around growth, highly skilled jobs and benefitting the local communities.

"The tax sites can offer real benefits and tax reliefs to eligible businesses – helping them grow and invest in their future.”