The West Midlands Gigafactory has been shortlisted to become one of the UK's first investment zones (IZ) following Friday's (September 23) budget announcements by Chancellor Kwasi Kwarteng.

Along with the 23 other sites earmarked for the scheme, the new battery cell manufacturing facility could benefit from a range of tax cuts and relaxed planning laws to boost investment and job growth.

Granted planning permission by Warwick District Council in January, the 530,000sqm Gigafactory site will be built at Coventry airport next to the wider Gateway South area established as part of the 2017 Warwick district local plan.

"That is an unprecedented set of tax incentives for businesses to invest, to build and to create jobs right across the country," Kwarteng said.

"If we really want to level up, we need to unleash the power of the private sector."

The government has already spoken to 38 local authorities about the zones, with the HS2 Interchange site near Birmingham Airport also shortlisted.

Businesses in the selected areas will receive tax reliefs for 10 years for their buildings and 100 per cent tax relief on plant, machinery and new building spending.

Land purchases will be without stamp duty for businesses and housing developments in the areas.

And employers will not have to pay national insurance contributions for the first £50,000 of salaries for workers who are based on that site for 60 per cent of the time.

Cllr Andrew Day, leader of WDC said: "Establishing an investment zone is a breakthrough offer from government, which creates a favourable climate to secure the £3.4billion in investment needed to deliver the West Midlands Gigafactory.

"This vital new facility will anchor our important automotive and future mobility supply chain, that already supports 50,000 research, development and manufacturing jobs locally, as well and many and many more across the West Midlands.

"This is just the sort of bold initiative we need to foster the right environment for step-change investment, enabling our net zero economy to flourish."

What else was announced in the budget?

The rest of the budget saw Mr Kwarteng outlining a series of tax cuts and economic measures in a massive shake-up of the UK's finances. 

The basic rate of income tax has been cut to 19p and an increase in National Insurance has been reversed. 

The threshold before stamp duty is paid in England and Northern Ireland has been raised to £250,000 - for first time buyers it's £425,000 

In what is seen a nod towards increasing business confidence the cap on bankers' bonuses has been lifted, and a planned rise in corporation tax has been scrapped. The 45 per cent top rate of tax for higher earners abolished - although this doesn't apply in Scotland. 

In total there will be £45billion in tax cuts by 2027 but much of that - national insurance cuts, the abolition of the cap on bonuses and the highest rate of income tax - is channelled towards higher earners and has already brought some sweeping condemnation. 

The BBC's Global trade correspondent Dharshini David commented, for example: "The richest 10 pert cent of society will gain 60 times as much from the National Insurance cuts as the poorest 10 per cent. 

"It's a marked difference from the policy of recent years in which the government focussed more on redistributing income". 

The Chancellor hailed his changes to national insurance, stamp duty and income tax  as a "new era" - but Labour's Rachel Reeves called his mini-budget "a plan to reward the already wealthy". 

In summary: 

• The basic rate of income tax will be cut by 1p to 19p from April 2023 
• The 45p tax rate for top earners over £150,000 will be abolished, also from April next year 
• The level at which house-buyers begin to pay stamp duty is doubled from £125,000 to £250,000 
• First-time buyers will pay no stamp duty on homes worth £450,000, up from £300,000 
• Planned rise on corporation tax from 19 per cent to 25 per cent is scrapped 
• A 1.25 per cent rise in National Insurance to be reversed from 6 November 
• Cap on bankers' bonuses, which limited rewards to twice the salary level, is axed 
• Cost of subsidising both domestic and business energy bills will cost £60billion for the next six months 
• UK to introduce sales tax-free shopping for overseas visitors 

Like this story? Then subscribe to our FREE weekly newsletter to get the latest Warwick news straight to your inbox every Friday.