The North East of Scotland Investment Zone Joint Committee was scheduled to discuss a strategy for retaining non-domestic rates to support investment zone objectives, alongside several business cases for projects focused on energy transition and digital technology. The meeting also included a review of the overall programme update and consideration of the public sector equality duty.

Non-Domestic Rates Retention Strategy

A key item on the agenda was the proposed Non-Domestic Rates Retention Strategy (NDRR). This strategy outlines how non-domestic rates growth generated within designated North East Scotland Investment Zone (NESIZ) tax sites will be administered, governed, monitored, and reinvested. The strategy aims to provide a clear framework for reinvesting retained rates income to support NESIZ objectives over the lifetime of the tax sites. It details the principles, objectives, beneficiary groups, operational responsibilities, and financial controls that will guide decisions. The report recommended the approval of this strategy, subject to the adoption of specific points within the paper. The strategy is intended to support the delivery of green energy and digital technology cluster growth, unlock development, increase investor confidence, and widen the benefits of the Investment Zone across communities, businesses, and the workforce of the North East of Scotland.

The strategy details a hierarchy of reinvestment priorities, starting with core delivery, administration, and assurance, followed by enabling infrastructure and site readiness, then investor readiness, pipeline development, and innovation, and finally, skills, workforce, place, and wider enabling conditions. It also outlines a phased approach to implementation, from a foundation phase to a maturity and review phase. The strategy includes specific investment objectives across domains such as skills, regional infrastructure, research and innovation, local enterprise and business support, and planning and development.

The report also highlighted the importance of an Integrated Impact Assessment (IIA) for the NDRR policy and strategy, which was attached as an appendix. This assessment indicated positive impacts, particularly concerning area deprivation, by encouraging businesses to locate and invest in designated tax sites in Peterhead, potentially leading to job creation, skills development, and economic growth in areas with social deprivation.

Programme Update

The committee was scheduled to receive an update on the North East Scotland Investment Zone programme. This update was expected to cover programme-level issues and risks, including the status of various business cases. Previous discussions had highlighted risks related to the capital and revenue classification of project funding, as well as subsidy control, particularly the absence of a dedicated government scheme for green energy and environmental sectors. The update was also anticipated to address a projected underspend for 2026-27 and potential mitigation options.

Business Cases

Several business cases were listed for discussion, all of which were designated as containing exempt information relating to the financial or business affairs of particular entities. These included:

• Business Case IZ02 - Deepwater Wind Hub: This business case was scheduled for discussion, with information relating to applicants for, or recipients of, financial assistance from the Council being exempt.
• Business Case IZ03 - Energy Transition Skills Hub: Similar to IZ02, this business case was also subject to exemption due to its content concerning financial assistance.
• Business Case IZ12 - The Green Energy & Digital Technology Accelerator: This item also involved exempt information related to financial assistance.
• Business Case IZ05 - ONE Entrepreneurship Programme: This programme's business case was also to be discussed under exempt information provisions.
• Business Case IZ06 - Digital Tech Innovation Fund: This fund's business case was similarly subject to exemption.

These business cases were presented in a previous meeting on 21 August 2026, where the committee had agreed to exclude the public and media from discussions on these items due to the likely disclosure of exempt information.

Public Sector Equality Duty

The committee was reminded of its legal duty under section 149 of the Equality Act 2010 to have due regard to the need to eliminate discrimination, harassment, and victimisation; advance equality of opportunity; and foster good relations between those who share protected characteristics and those who do not. Members were directed to consider the contents of any Integrated Impact Assessment (IIA) provided within reports to inform their decision-making. The IIA for the Non-Domestic Rates Relief and Retention policy was attached to the reports pack, indicating positive impacts on area deprivation and a focus on supporting the green energy and digital technology sectors.