A new low-tax investment zone with relaxed planning rules could be set up in Yorkshire

Prime Minister Liz Truss is keen to roll out dozens of these zones, where businesses will be offered a range of tax breaks and planning rules will be relaxed, in a bid to generate additional investment and drive economic growth.

South Yorkshire Mayor Oliver Coppard’s office is looking to work with the Government to establish one of these zones, but it has not revealed a preferred location yet.

In a report, the Labour mayor’s office said businesses could benefit from tax cuts, developers could take advantage of a streamlined planning system to complete projects faster and the Government may provide additional funding for infrastructure.

It added: “Investment zones have the potential to drive growth in our major growth centres by helping to unlock additional investment, attract new businesses into the region and supporting existing businesses to grow faster.”

South Yorkshire is one of 38 areas where political leaders are planning to submit an expression of interest to the Government before the deadline on October 14.

But the mayor’s office has been told that new legislation will need to be passed before the zones can be fully rolled out.

The Government has said it will set up these low-tax zones where they will have “the greatest impact on growth and housing supply” and they will “particularly support regeneration of undeveloped and under-developed areas”.

But it also stated that political leaders must show that the introduction of a zone will not displace businesses and developments in the surrounding areas.

Speaking at the Conservative Party Conference earlier this month, Chancellor Kwasi Kwarteng said the scheme will “empower local areas to do things differently”.

He said: “We will liberalise planning rules, releasing land and accelerating development.

"We will cut taxes for business in these zones.

“We will accelerate tax reliefs for new structures and buildings.

"We will provide relief on investments on plant and machinery.

“We will lower taxes which stop businesses hiring and skilling up their workforce.

“That is an unprecedented set of incentives for business to invest, to build, and to create jobs right across the country.”

However, several environmental groups have raised concers about the proposed relaxation of planning rules.

The National Trust said the zones must not be “devoid of nature or historic character” and people should continue to have a say about developments which affect them.