COUNCIL hopes of creating jobs through the introduction of low-tax “investment zones” have been dashed by a government U-turn.

Chancellor Jeremy Hunt announced the government would “re-focus” the initiative introduced by Liz Truss’s administration – and all existing proposals would be scrapped.

Former chancellor Kwasi Kwarteng had introduced the idea of the zones, which would have looser planning regimes to release land for commercial and housing development.

BCP Council was not on the original list of 38 councils interested in exploring the idea, but later registered its interest in exploring several investment zones.

READ MORE: Low-tax zones with looser planning rules being explored by BCP Council chiefs

The sites proposed were Bournemouth Airport and Aviation Business Park; the Port of Poole; the Poole Town Centre North and Twin Sails Regeneration Area; and the Cotlands and York Road areas of Bournemouth’s Lansdowne.

Dorset Council was on the list of 38, proposing a site adjacent to the Dorset Innovation Park in Wool, several sites around Weymouth’s harbour and marina, and the Portland port area.

However, the full text of the government’s autumn statement said it would “refocus” the programme “to catalyse a limited number of the highest potential knowledge-intensive growth clusters, including through leveraging local research strengths”.

“The existing expressions of interest will therefore not be taken forward. The government is grateful to local authorities for their work to develop proposals,” it said.

Cllr Tony Ferrari, cabinet member for economic growth at Dorset Council, said: “While this is disappointing news for Dorset, the chancellor’s statement also referred to levelling up, confirming that the round two levelling up fund of £1.7billion will be maintained.

“Dorset Council submitted an application in this round and we wait to hear the outcome which we understand will be given by the end of the year.

“We also maintain our commitment to building on the achievements secured at the Innovation Park Enterprise Zone near Winfrith to promote economic growth in Dorset and, for this reason, we will await the outcome of the government’s review of the Investment Zone policy.”

For BCP Council, Cllr Philip Broadhead said: "We continue to follow with interest the government's plans on Investment Zones. The very act of preparing the submissions of interest for our suggested zones has generated new ideas and relationships with stakeholders that we'll be taking forward, whatever the outcome of the zones.

“In the meantime, as a region with three stellar universities – each with their own specialisms – we're well placed to take forward any opportunities which may present when the details emerge of the new, education-focused zones.”