The Chancellor, George Osborne, today set out the key aims of his 2011 Budget as reforming the economy to produce “strong, sustainable and balanced growth that is more evenly shared across the country and between industries”.
In pursuit of these aims he has announced a number of measures to encourage business and enterprise. One key measure is the announcement of 21 new Enterprise Zones. The first ten will sit within the following Local Enterprise Partnership (LEP) areas:
Birmingham and Solihull; Leeds City Region; Sheffield City Region; Liverpool City Region; Greater Manchester; West of England; Tees Valley; North Eastern; the Black Country; and Derby, Derbyshire, Nottingham and Nottinghamshire.
In addition London will benefit from an Enterprise Zone in an area chosen by the mayor, Boris Johnson, with a further ten areas being selected following representations by Local Enterprise Partnerships. Full details with regard to these Enterprise Zones including the exact locations of the first ten will be announced within the next few days.
As an incentive to participating in the new Enterprise Zones, the Chancellor has promised the following key measures:
• 100% business rate discount worth up to £275,000 over a 5 year period for businesses moving into an Enterprise Zone
• All business rates growth within the zone for 25 years to be retained by local authorities
• Simplified planning
• Superfast broadband
The government will also work with LEPS to consider the scope for introducing enhanced capital allowances, the use of Tax incremental finance and trade support.
Further information and clarification with regard to the new Enterprise Zones will be published via this blog when it becomes available.