Budget 2011: Yorkshire cities to get enterprise zones
LEEDS and Sheffield will each have an enterprise zone as the Government today revealed plans to revive the concept in 21 areas across the country in a bid to boost regional economies.
Chancellor George Osborne said the first 10 would be set up in Leeds, Sheffield, Liverpool, Birmingham and Solihull, Greater Manchester, the Black Country, Tees Valley, Tyneside, Bristol, and Derbyshire and Nottinghamshire.
He did not give specific locations but said more details would be announced tomorrow.
A further 10 will be unveiled in the summer and an additional zone is earmarked for London to be chosen by the mayor of London, Boris Johnson.
Mr Osborne told Parliament: “I want local enterprise partnerships (LEPs) all over the country to come forward with their proposals.”
He said these areas will benefit from up to 100% rate relief, enhanced capital allowances for manufacturing companies, relaxed planning restrictions and superfast broadband.
Local authorities in these areas will also be permitted to keep all business rates raised in their zones for 25 years.
The plan is a revival of an idea launched by Margaret Thatcher’s Conservative government in the early 1980s.
Neil Holyoake, tax partner at Ernst & Young in Leeds, 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.”
