The Flintshire and Wrexham Investment Zone (IZ) will create small pockets of land within North East Wales where manufacturers will pay less in rates and taxes to boost activity.
It is expected to benefit the two local authorities as well, as they will be able to keep a significant proportion of the rates those companies do pay to re-invest in the local area.
The IZ is expected to attract £1 billion of advanced manufacturing investment to the region – supported by £160m of UK Government funding over the first 10 years to kick-start the programme.
Tax-efficient sites will be located at Deeside Gateway, Deeside Industrial Park, Wrexham Industrial Estate and Warren Hall near Broughton.
There are only two Investment Zones in Wales – the other being across Cardiff and Newport.
Flintshire Council’s Deputy Leader Cllr Richard Jones explained how important it was to get the IZ up and running as soon as possible – perhaps even before the end of 2025.
“These opportunities don’t come along too often,” he told Flintshire County Council’s Cabinet.
“We know that Flintshire is recognised for its manufacturing – from lead smelting and the steel industry in the past to vehicle manufacturing and assembly, aerospace innovation, heavy plant gearbox and axle manufacturing and large construction companies.
“This funding will allow us to build upon that legacy to provide the future of hi-tech advanced manufacturing. That will become our legacy.
“Recent evidence has shown that for every job held in our larger employers – like Airbus and Toyota – there is a knock on benefit to the local supply chain.
“Each person employed in those larger businesses creates another eight jobs in the supply chain locally.
“We find ourselves being in the enviable position of being able to provide investment of scale to create the right improvements for trickle-down economics that will support small and medium-sized enterprises within Flintshire and Wrexham.
But at this late stage there are still high-level discussions taking place to finalise how the scheme will be managed.
An Inter Authority Agreement (IAA) will underpin the agreed governance arrangements between the three main bodies – the North Wales Corporate Joint Committee (CJC), Flintshire County Council and Wrexham County Borough Council.
It will also set out some of the revenue and capital allocations for
spend by Flintshire and Wrexham councils – detailing core investment commitments for the £160m funding pot.
Wrexham Council Leader Cllr Mark Pritchard told his authority’s Executive Board. that talks to finalise the governance arrangements were continuing as all sides tried to cut through this final bit of red tape to bring the IZ into effect.
“Work has been ongoing between the two councils, Welsh Government and UK Government and the North Wales Corporate Joint Committee on this complex area,” he said.
“We are now awaiting news on the progress of Gateway Five – the last stage of the business case. We are getting closer to the finish line.
“I have been involved, with officers, in important discussions with Welsh Government over the tax policy.
“I expect these discussions will continue over coming days and weeks so matters are resolved prior to the signing of the Memorandum of Understanding.”