The North East Scotland Investment Zone Joint Committee met on Friday 11 September 2026 to approve a Non-Domestic Rates Retention Strategy and to discuss the overall programme update. The committee agreed to adopt the Non-Domestic Rates Retention Strategy, which outlines how future rates growth generated within designated tax sites will be reinvested to support the Investment Zone's objectives.

Non-Domestic Rates Retention Strategy

The committee approved the Non-Domestic Rates Retention Strategy (NDRR), which establishes a regional framework for reinvesting non-domestic rates growth from designated tax sites to support the North East Scotland Investment Zone (NESIZ) objectives. This strategy is separate from non-domestic rates relief policies, which are handled by individual councils. The NDRR strategy aims to unlock development, accelerate cluster growth in green energy and digital technology, increase inward investment, foster innovation, and support inclusive economic benefits. It sets out principles for reinvestment, including additionality, strategic fit, value for money, and deliverability. The strategy will be reviewed annually. The approval was subject to the finalisation of a Memorandum of Understanding between Aberdeen City Council and Aberdeenshire Council, and the ongoing processes for the non-domestic rates relief policies in both councils.

During the discussion, Stanley Morrice, Acting Chair of Opportunity North East, sought clarification on whether the retained rates investment falls within or outside the 60-40 capital revenue test. Kelly Wiltshire, Service Manager, Economic Development, confirmed that non-domestic rates retention is outside the flexible fund and represents monies above the base rate for non-domestic rates, thus being over and above the £160 million core funding.

The Integrated Impact Assessment (IIA) for the Non-Domestic Rates Relief and Retention highlighted a positive impact on area deprivation, particularly in Peterhead, where the tax sites are located. The policy is expected to encourage businesses to invest in these areas, potentially leading to job creation, skills development, and economic growth. The IIA also noted that the Investment Zone's focus on green energy projects will support the low carbon transition and economic and social transition within the region.

Public Sector Equality Duty

The committee agreed to adopt a resolution to have due regard to the need to eliminate discrimination, harassment, and victimisation, to advance equality of opportunity, and to foster good relations between those who share protected characteristics and those who do not. They also agreed to consider the contents of any Integrated Impact Assessment provided when reaching decisions.

Minute of Previous Meeting

The minutes of the North East of Scotland Investment Zone Joint Committee meeting held on 21 August 2026 were approved as a correct record, with a minor amendment to correct a spelling error in Maggie McGinley's name.

Programme Update

While the detailed discussion on the NES Investment Zone Programme Update occurred in a private session, the public part of the meeting concluded after the approval of the Non-Domestic Rates Retention Strategy. However, the agenda indicated that the programme update would cover key strategic risks, including capital/revenue classification, subsidy control, and in-year funding profiles, as well as mitigation actions. It was also noted that tax sites were operational with investor interest, and the £5 million Scottish Government Skills Fund would be soft-launched. The committee had previously agreed that the Investment Zone Programme update would become a standing agenda item.