David Cameron announces 11 new enterprise zones

Published 17th Aug 2011

David Cameron today announced a second wave on Enterprise Zones that ministers said could create up to 30,000 new jobs by 2015.

In the Budget the Government announced an initial 11 Enterprise Zones in some of the country’s largest cities, including Manchester, Birmingham, Merseyside and Newcastle, as part of a bid to stimulate the UK economy.

The enterprise zones will benefit from discounts on business rates, new superfast broadband, lower levels of planning control and the potential to use enhanced capital allowances.

The latest zones will be located in:

* Humber Estuary Renewable Energy Super Cluster;
* Daresbury Science Campus in Warrington;
* Newquay AeroHub in Cornwall;
* The Solent Enterprise Zone at Daedalus Airfield in Gosport;
* MIRA Technology Park in Hinckley Leicestershire;
* Rotherwas Enterprise Zone in Hereford;
* Discovery Park in Sandwich, Kent and Enterprise West Essex in Harlow;
* Science Vale UK in Oxfordshire;
* Northampton Waterside;
* Alconbury Airfield, near Huntingdon in Cambridgeshire; and
* Great Yarmouth in Norfolk, and Lowestoft in Suffolk.

The Prime Minister said: “We are determined to do everything we can to make Britain the best place in the world to start and grow a business.

“Enterprise Zones are a major step towards delivering this; cutting business taxes, easing planning restrictions and giving business the tools they need to invest and expand.

“These new Enterprise Zones will be trailblazers for growth, jobs and prosperity throughout the country.”

Business groups in areas that missed out on the latest round of zones expressed concerns for large schemes planned with Enterprise Zone status in mind.

Louise Bennett. chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “We are disappointed by the Government decision because we feel the existing plans for the development around Coventry Airport and the linkage with the Whitley side make total sense.”

Peter Chapman, head of rating and compensation at Cluttons, commented: “Given these further announcements, rather than creating 30,000 new jobs, existing businesses will be very concerned that they will lose their staff who will be attracted to these new job opportunities within the new Enterprise Zones, causing a shortage of skilled labour in surrounding areas.

“It may be worth remembering that when Enterprise Zones were introduced in the 1980s, they enjoyed a chequered reputation. High profile successes such as Canary Wharf sat alongside the less impressive zones in Glasgow and the North of England.

“Back then, one of the unforeseen impacts of Enterprise Zones was their detrimental impact on property values of properties which fell outside the designated area. This will now be further exacerbated by labour shortages.

“However, following successful rating appeals these properties were able to claim substantial savings of up to 25% in relation to their business rates depending on proximity of the premises to the boundary.

“This silver-lining made narrowly missing out on the full exemption from business rates somewhat more palatable for occupiers outside the zones but does not address potential labour shortages which will impact on the bottom line of these businesses.”

Source: ' Property Week '

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