Budget 2011: Enterprise zones come to Birmingham and Black Country
THE West Midlands has been included in a Government plan to revive the concept of enterprise zones in a bid to boost regional economies.
Birmingham and Solihull and the Black Country are two of 10 areas across England to be earmarked for the special business zones which offer incentives to draw in new businesses to a certain location.
A further 10 would be announced in due course with a 21st in London to be chosen by Mayor Boris Johnson, Chancellor George Osborne said in his 2011 Budget speech.
Enterprise zones, once a flagship policy of Mrs Thatcher’s Government, would benefit from up to 100% rate relief, enhanced capital allowances for manufacturing companies, relaxed planning restrictions and superfast broadband.
In return for reduced planning restrictions, local authorities will be able to keep all business rate growth in their zone for a period of at least 25 years to spend on development priorities.
The other eight enterprise zones revealed by Mr Osborne were Leeds, Liverpool, Derbyshire and Nottinghamshire, Greater Manchester, Tees Valley, Tyneside, the Bristol area and Sheffield.
Graeme Crawford, tax partner at Ernst & Young in Birmingham, said: “The creation of 21 new enterprise zones generates opportunities for businesses in those locations or with flexibility to locate within the new zones.
“Location is a key decision in starting any business and the success of the Chancellor’s plans for regenerating local economies will be spurred on by private sector interest in the zones.
“Discounted business rates, access to super fast broadband and enhanced capital allowances will all attract start up and growing businesses keen to reduce costs.”
