When he delivered his budget speech last week, the Chancellor announced that 21 enterprise zones were to be created rather than the originally planned 10. Businesses moving into one of these will receive discounts of up to 100% on their rates, superfast broadband and enhanced capital allowances where the zone focuses on manufacturing.
HMRC has confirmed that the 100% discount in business rates could be worth £275,000 over five years and would be available to any company that moves into an Enterprise Zone.
The original 10 Enterprise Zones will go-ahead as planned in areas such as Tyneside and the Bristol area. Boris Johnson has selected the Royal docks in Newham as a suitable site in the Capital and the location of the other 10 Zones will be revealed in the summer.
Whilst the plan has been well received, Manos Schizas, the small business policy adviser at the ACCA, is concerned that 10 of the zones have still to be determined. He says this suggests that the coalition isn’t really sure what to do with them.
The REC has welcomed the new zones saying the plan indicates the government intends to back enterprise and encourage growth. However, it urges the coalition to learn from the mistakes of the previous Enterprise Zone programme.
The London regional director of the REC, Jes Ladva, welcomed the announcement on the London zone. He pointed out jobs for contractors will play a key role in developing the zone and this type of work will give the unemployed an opportunity to get an insight into the world of work and give employers a flexible local pool of staff.
Keith Gallagher, the regional director of the REC in the North West was equally delighted that Manchester Airport and Liverpool Waters have been selected as Enterprise Zones saying both areas have witnessed a marked decline in business start-ups over the last few years.
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Image: fist by Joel Bedford
