State of the Region: Backing for enterprise zones, but not LEPs

ENTERPRISE zones in Cheshire, Lancashire, Merseyside and at Manchester Airport, will help to generate economic growth across the North West, business leaders have said.

More than two-thirds of respondents to TheBusinessDesk.com’s State of the Region survey 2012 believe the government initiatives will bring positive benefits.

Businesses in enterprise zones will benefit from reduced business rates, superfast broadband and an easier planning regime, while any estra cash raised by council in attracting firms to a zone can be retained to pour back into other projects.

However, the jury is still out amongst the business community on the impact of Local Enterprise Partnerships – the vehicle introduced to help drive economic growth in the region following the axing of the North West Development Agency.

Only 16% of respondents – the lowest of the three regions covered by TheBusinessDesk.com –  said LEPs had had a positive impact on the region’s business community. A fifth said they hadn’t and 60% said they didn’t know.

In other areas of the survey, the impact of public sector cuts are seen as the biggest challenge facing the region over the next 12 months – a view shared by respondents to our survey 12 months ago.

A lack of private investment was also seen as a major challenge. However, the vast majority of respondents (98%) still believe the North West is a good place to do business.

Inward investment, access to finance and transport and infrastructure were all cited as areas that need to be addressed to drive further growth.

TheBusinessDesk.com’s State of the Region survey 2012, which has been completed by hundreds of business leaders, is supported by lead sponsor DLA Piper and also by PwC and the CBI.

Click here to download the full State of the Region 2012 survey.

The results give a comprehensive view of the business landscape across Yorkshire, the North West and West Midlands.

Chris Bowes, planning partner at DLA Piper in Manchester said: “The enterprise zones will play a crucial role in our economic recovery and this is reflected in the positive response in the survey, with almost 70% of respondents believing Enterprise Zones will be good for the overall growth of the region.

“Their introduction will provide significant opportunities for emerging businesses and sectors in the North West, which in time will help to boost the local economy.

“Working alongside the enterprise zones, LEPs, whilst still in their infancy, are likely to play an important part in supporting the region’s ambitions. As can perhaps be expected, there is currently a very high level of uncertainty as to whether LEPs will have a positive impact on the region’s business community.

“However, by focusing on key areas of opportunity, LEPs will work on more consolidated plans that will be implemented over the next 12 months to drive the vision forward and build confidence in the work being done. 

“A strategic approach needs to be adopted to assist businesses in their growth aspirations. But if significant levels of prosperity are to return to the North West, then organisations must also continue to broaden their horizons, exploring opportunities that lie beyond the region and consider ways to target new markets.”

Alison Lever, Tax Partner at PwC in the North West added:  “Private businesses are happy to be located in the region and most feel that it is a dynamic and supportive business environment – this is a positive endorsement for the region as a whole.

“The new enterprise zones are expected to have a positive impact on the regional economy in 2012 potentially creating opportunities for local businesses.

“Here in the North West, enterprise zones at Liverpool Waters, Manchester Airport and Daresbury Science & Innovation campus, and hopefully more to come, give us a great springboard for growth and wider regeneration across the region.”

What you said on enterprise zones:

“The devil will be in the detail, and it is up to Liverpool, Daresbury and Airport City and the other locations to maximise the opportunity and create jobs.”   

“Anything that improves confidence, both in communities and within business generally, must be welcomed.”

“Now capital allowances have been made available in part this should encourage inward investment.  This needs to be applied to the building product to encourage speculative commitment from developers.”