MP supports Portsmouth's investment zones bid - but says caution needed

Stephen Morgan said he supported attempts 'to bring much-needed investment' to the city but said he was concerned by the 'potentially significant impacts' of these areas with little guidance given on how they will work.

'The Solent has struggled to attract the investment and retain the talent to drive growth,' his letter said. 'This has seen the area underperform both the south east and the UK average in productivity terms.

'The suite of incentives that are proposed for investment zones provides the potential to ‘level-up’ the playing field and tilt the balance of viability, unlocking stalled, and encouraging new investment.

But he added that it would be 'remiss' of him to not address concerns around the potential effect they could have on the availability of affordable housing, workers’ rights and environmental standards.

'I will not stand in the way of them submitting this application of initial interest, but far more detail is required,' he said.

Council leader Gerald Vernon-Jackson said the Portsmouth bid had been submitted in conjunction with separate bids for zones in Southampton and the Isle of Wight.

‘It is still an expression of interest at this stage and there are still concerns about some of the things they might allow – particularly if developers are able to build whatever they like without planning permission,' he said. ‘But we are very keen to explore anything which encourages investment and the creation of jobs in our city.’

The concept was brought in by the former chancellor Kwasi Kwarteng and hundreds of bids have been submitted.

But concerns have been raised most notably by conservation groups which have warned they could threaten protected habitats.

Debbie Tann, the chief executive at Hampshire & Isle of Wight Wildlife Trust, said she had ‘significant concerns’.

‘The announcement of new investment zones represents a free-for-all on nature by weakening the laws previously in place to protect it from bulldozers and concrete,’ she said.

The resignations of Mr Kwarteng and prime minister Liz Truss led to doubts over the scheme but the government said successful applications would be confirmed soon.