Will Birmingham’s Enterprise Zone be on the M42 corridor?

THE region’s business community was today awaiting details of which areas within Birmingham and the Black Country will be designated Enterprise Zones following the Chancellor’s announcement within his Budget speech.

Insiders were yesterday dampening speculation that Birmingham and Solihull’s EZ would be announced ahead of the appointment of the chairman of the area’s Local Enterprise Partnership, but Chamber chief Jerry Blackett this morning said a development in the M42 corridor near the airport and NEC ‘could be an option’.

George Osborne said there would be a total of 21 Enterprise Zones, 10 more than expected, where businesses would be encouraged by the p[rospect of up to 100% rate relief, enhanced capital investment allowances and superfast broadband. Local authorities would keep increased business rates receipts for up to 25 years, instead of passing them on to central government.

The announcement signalled a move away from the approach pioneered by Mrs Thatcher in the eighties, when Zones were located in areas of high deprivation, by indicating they would be located where there were high growth prospects for business.

Christine Braddock, president of Birmingham Chamber of Commerce, said Birmingham and Solihull’s Zone had enormous potential for growth that would produce opportunities for investment, including overseas.

She said: “This is an extremely positive step forward. This Zone has the potential to drive growth, incentivise business and encourage entrepreneurship and so will help to support the delivery of our LEP’s vision.”

Lord Kumar Bhattacharyya, head of Warwick Manufacturing Group, praised the Budget’s “significant commitment” towards manufacturing.
He said he was “delighted” to see the re-introduction of Enterprise Zones particularly given the current difficult economic conditions.

John Rider, West Midlands chairman of the Institute of Directors said: “Enterprise Zones are  good news for Birmingham. I welcome anything that will generate activity and jobs, but we will be looking carefully at the detail. The issue is about the cost of creating each new job, which in the past was too high.”

James Watkins, executive director of Business Voice West Midlands said: “The announcement by the Chancellor that enterprise zones will be established in Birmingham, Solihull and the Black Country is good news.
“It is clear that, despite the excellent businesses and innovative products and services being developed in this part of the country, we need extra help to ensure that the Midlands is motoring again. Enterprise Zones can do that.

“However, Enterprise Zones need to be linked to the supply chain needs of sectors such as aerospace and automotive, which covers a wide geographical area. If the Chancellor can pull that off then he will be remembered for many years in the Midlands for the best of reasons.”

Simon Lloyd, head of industrial and logistics at DTZ, said: “The announcement of 11 new Enterprise Zones will provide a much needed boost to help kick start the Midlands economy. The 80s zones of Thatcher’s era acted as a direct catalyst for investment, helping rejuvenate areas of the region and it is hoped the Black Country and Birmingham will benefit from simplified planning applications, tax breaks and business rates relief of up to £275,000 over the next five years.  

“However, there are still question marks over the detail of today’s announcement, for example will business rates relief encompass void rates and will tax breaks apply to building projects as well as existing properties? And although we were already aware that enterprise zones will need to sit within existing Local Enterprise Partnerships, the exact relationship between the two has yet to be confirmed.”