Chancellor Jeremy Hunt has confirmed in the Budget plans to go ahead with 12 investment zones, each backed by a multi-million-pound injection of cash.

Mr Hunt said the low tax and low regulation areas will be ‘bold and imaginative partnerships' between local government and a research institute that will attract investment and ‘catalyse new innovation clusters'.

Eight places across the Midlands and North of England have already been shortlisted to host the investment zones.

The Government expects to agree plans with the eight combined authorities covering these areas by the end of the year.

There will also be four zones across Scotland, Wales and Northern Ireland.

Each area that makes a successful application to become an investment zone will be given access to £80m of support over five years for a number of interventions, including on skills, infrastructure, tax reliefs and business rates retention.

In order to access the funding, areas will be required to produce plans that detail how local partners will use the powers available to boost growth in priority sectors, identify private sector match funding and use the local planning system to support growth.

The mayoral combined authorities will lead on the proposals.

Where there is no combined authority, an interim accountable body will be agreed.