Call for new job 'zones' to help North East grow

‘OPPORTUNITY zones' offering tax breaks for companies that create jobs in places like the North East should be set up to encourage more firms to set up outside London, a new report says.

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The Social Mobility Commission - the official body set up to assess social mobility in the UK makes a series of recommendations on sparking economic growth in poorer areas of the country.

Its report urges the Government to support the creation of new zones in parts of the UK most in need of economic progress.

Under the proposal, investors would receive deferrals and reductions in Capital Gains Tax when investing in deprived areas.

Similar plans in the US have generated tens of billions of dollars of investment over the last five years and the Commission believes that UK pension funds could provide significant investment into poorer regions.

The report also calls for the creation of startup hubs on high streets to help people start their own firms, along with £3,000 skills accounts to help people in poorer areas.