Business News
Areas earmarked for potential set to benefit from Enterprise Zones Initiative
Selected areas across the country that have shown to be in predominant need of growth and that showed potential in doing so have been chosen to be part of a growth focus initiative founded and championed by George Osborne.
The authorities in the selected 21 Enterprise Zones will benefit from keeping their business rate growth for the next 25 years at least to spend on development, part of a larger estimated fund of £100mn set aside for the initiative. Osborne claims that, “Businesses will get up to 100% discount on rates, new superfast broadband and the potential to use enhanced capital allowances in zones where there is a strong focus on manufacturing.”
With this in mind, enhanced capital allowances are being considered for enterprise zones where there is a strong focus on high value manufacturing and The HRMC’s Overview of Tax Legislation and Rates states that the 100% business rate discount would be worth up to £275,000 over a five-year period and be available for any business moving into an Enterprise Zone.
The first 10 Enterprise Zones deemed the highest priority for the development programme are listed below, and will be joined by a candidate site to be chosen by Lord Mayor Boris Johnson, and 10 other sites under review to be revealed in the Summer.
First 10 sites:
· Birmingham and Solihull
· Leeds
· Liverpool
· Greater Manchester
· The Tees Valley
· Tyneside
· The Bristol area
· The Black Country
· Derbyshire and Nottinghamshire
· Sheffield
The initiative has been compared to the regeneration projects of the 80’s and 90’s under Margaret Thatcher and Michael Heseltine, after the very positive restructure of London Docklands and the Trafford District in Manchester. It has however been met with some scepticism from small policy advisor Manos Schizas from the ACCA, “The fact that 10 out of the 21 zones are yet to be determined and will be put up for tender suggests the government isn't entirely sure what it would like to do with them,” he said.
“Such long-term decisions, however, should not be taken lightly, so the case for an additional 10 zones must be made first. If enterprise zones are to be a success then they have to demonstrate that they are good value for the substantial concessions given.”
A more positive angle came from Edward Rimmer, Bibby UK Chief Executive, who stated that stimulating start-ups in the previously stagnant regions would create much needed employment opportunities in struggling parts of northern England and the Midlands.
The Enterprise Zone venture has also been met with positive feedback from the very businesses it would look to assist, one such example being Susan Hallam, founder and managing director of Hallam Communications in Nottingham. Hallam told Business Zone that slow internet connections had been hampering her business as an online marketing company:
"The fact that an enterprise zone will be set up here in Nottingham is the best piece of news I've had for years," she said. "At last I'll have access to a guaranteed, super-fast broadband connection - it'll put me on the front foot, allow me to grow my business and take on more staff. Frankly if it doesn't happen, I'll have to leave the city and set relocate my business somewhere else."
