Enterprise Zones: Airport City will boost all of Greater Manchester, says Bernstein

THE chief executive of Manchester City Council chief executive says the new Enterprise Zone at Manchester Airport will benefit the whole of the city-region, not just south Manchester.

Sir Howard told TheBusinessDesk.com: “We believe the scale of the development which we are bringing forwards will meet our skills needs and will be a major opportunity for driving growth not only for Manchester but for the wider city-region,” he said.

Under the terms of the Enterprise Zones, businesses will be exempt for the first £275,000 of business rates for the first five years. However, as an incentive to promote development within the zones, councils get to keep all business rate revenues raised within the zone for 25 years.

Sir Howard said that the benefits accrued in terms of extra tax revenues generated by the Airport City project  was not ring-fenced for other developments within the zones

He said that the city had “one single labour market and one combined strategy”.

“We’re committed to ensure that the benefits that flow from activities within the zone will be reinvested to meet the priorities of the whole of Greater Manchester,” he said.

John Atkins, managing director of the airport’s property arm, MAG Developments, said that Manchester was the only airport outside of London which could develop this type of scheme – as an airport which attracts around 15 million passengers was needed..

He also argued that the 3 million sq ft of commercial space which will be developed within the zone would provide “A competitive offer for the city”.

Moreover, since the space will be aimed at inward investors, he said that it would complement, rather than dilute, the city centre’s commercial office market.

Mr Atkins also argued that the development offered an opportunity to redevelop the neighbouring Wythenshawe estate.

“Wythenshawe is very important to the whole proposition,” he said. You very rarely get a major development opportunity and a regeneration area sat right next to each other.

“Airport City will be something that’s very much done in collaboration with Wythenshawe, the city council and local residents.”

He added that residents would share benefits such as improved link roads and better public transport to the area.

Manchester Airport Group chief executive Charlie Cornish said plans for Airport City included some health-related uses, which “will build upon the proximity of Wythenshawe Hospital as an international centre of excellence, science, research and advanced manufacturing.”

Consultation and planning for enabling works are due to begin when the Airport’s new financial year gets underway in April.