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Business rates break for UK's biggest gigafactory

Ruth BradleySomerset political reporter
News imageAgratas An aerial shot at sunset of the gigafactory steel frame on its construction site. There are houses and countryside in the distance. Agratas
The 616-acre site in Somerset is designated by the government as an enterprise zone

The company building the UK's biggest electric vehicle battery plant looks set to avoid having to pay business rates by investing £150m in local infrastructure instead.

Rather than Somerset Council taking out a loan to pay for measures, including improvements to local roads around the site near Bridgwater, Agratas would cover the cost.

In exchange, the council would waive the business rates due for 25 years.

Council leader Bill Revans said there was "no difference to what any taxpayer would see" as a result of the deal, which is still being finalised. A spokesperson for Agratas said the company did not want to comment at this stage.

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Agratas, part of the Tata Group, which also owns Jaguar Land Rover, is building the factory on an old Royal Ordnance Factory site at Puriton.

The site has been designated an enterprise zone by the government, which means the local authority would get to retain 100% of the business rates - normally 50% goes to central government.

The council had confirmed in March 2024 that it would be investing up to £150m, funded by external borrowing and repaid through retention of business rates, to deliver targeted infrastructure improvements.

News imageAgratas An artist's impression of the Somerset gigafactory building. There are hedges and a walkway. People are walking and some are on bikes.Agratas
The gigafactory will be one of the largest in Europe

The council said its role is to make sure the £4bn investment in the factory by Agratas will benefit the whole county.

"Somerset Council has a responsibility to provide the infrastructure - that's the training, making sure local jobs go to local people, and making sure the highways network can cope," said Revans.

"Basically what's going to happen is rather than us borrowing money and them [Agratas] paying us their business rates, and us using that to pay back the loan, they're going to do the work and keep the business rates," he added.

"There was possibly a small amount of risk [with the loan] if interest rates went through the roof that would be a liability to the council - we've eliminated a small amount of risk," said Revans.

Agratas has announced the completion of the steel frame for 'Building One', which it said used 23,000 tonnes of British steel – the same amount used to build Wembley stadium.

It plans for the factory to open in 2027.

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