Government plans to create investment zones to boost the economy could pitch two Kent authorities against each another.

Medway Council has confirmed it is to submit an application to become one of the areas central to the government’s growth agenda.

Meanwhile, Kent County Council has indicated it will also submit "an expression of interest" in the scheme, with Dover and Folkestone mooted as potential zones along with Ebbsfleet, near Dartford.

Businesses inside the special areas will receive 100% tax relief on investment in new plant and machinery in the first year.

They will also get 100% business rates relief on new premises and a holiday on employers’ national insurance contributions for employees earning less than £50,270 a year.

However, critics of the idea have warned there is a danger of creating “a developers’ charter” because the zones will be able to bypass normal planning rules.

The government says it wants to have an even geographical spread of zones, which could mean just one in the county will get the green light.

There is some disquiet over the potential for environmental damage and for greenbelt land to be sacrificed for houses.

Medway Council leader Cllr Alan Jarrett (Con) says the bid would only cover the authority’s area as he does not envisage joining forces with anyone else.

He said: “Medway is a big authority and can go it alone although there are aspects of the scheme we don't yet know about.”

Asked what the benefits could be, he added: “Anything that helps business grow and gives new opportunities to others.

"There is a housing element to it but it is not punitive in terms of housing targets.”

If the council was not satisfied by what was on offer, it would be able to walk away.

The policy of zones is reported to have sparked differences between PM Liz Truss and Chancellor Kwasi Kwarteng over how many could be set up.

She has argued there should be no limits but he is said to be worried about the costs.