UK Chancellor Hunt sets out English 'investment zones' ahead of budget

“Britain's Finance Minister Jeremy Hunt announced on Monday he would create 12 ‘investment zones’ in England to spur the regional economy outside London, a scaled-back version of a policy announced under former Prime Minister Liz Truss,” reported Reuters during the initial hours of Tuesday’s Asian session.

Key quotes

Ahead of Hunt's annual budget on Wednesday, the finance ministry said each of the zones will be backed by 80 million pounds spread over five years that can be directed towards tax relief for businesses, training and infrastructure.

Hunt also announced 100 million pounds ($122 million) of funds to be shared across Glasgow, Manchester and part of central England to improve their research and development centers.

Hunt looks set to keep his grip on public finances in the budget, holding off on any big tax cuts or spending increases until the next election comes closer into view.

GBP/USD grinds

Despite the price-positive news and the broad-based US Dollar weakness, the GBP/USD pair remains sidelined near the highest levels in a month, recently around 1.2770-80, after rising the most since early January the previous day.

Also read: GBP/USD grinds near one-month high below 1.2200 ahead of UK employment, US CPI