Enterprise zones boom with thousands of new jobs and over £2.2bn of new investment

• enterprise zones have now attracted 19,000 jobs to sites across the country
• since opening for business the zones are now home to 540 firms
• more than 2,000 trainees and apprentices are benefiting from zones, tackling local skills gaps

Enterprise zones are playing a vital role in growing the local and national economy, the Government say, after new figures show more than 19,000 jobs have been created under the scheme.

The 24 zones report that they have now attracted £2.2 billion of private investment and more than 500 new businesses across a range of key industries including the automotive, aerospace, pharmaceutical and renewable energy industry sectors.

Along with boosting the number of jobs, the zones are proving popular with colleges seeking to set-up facilities and training opportunities to fill gaps in the local skills market.

Local Growth and the Northern Powerhouse Minister James Wharton said:

“We are seeing enterprise zones across the country create thousands of jobs and billions of pounds of investment, boosting the local and national economy. This is testament to the hard work of local people making the most of opportunities the zones bring for attracting firms.

“Having 19,000 new jobs on zones is a significant milestone and one which we will continue to build as part of the government’s long-term economic plan to rebalance the economy.

“Britain is a great place to do business and there is much untapped potential local areas can build on, to make the most of their unique benefits, which is why more areas and businesses will be able to benefit from the support in a new wave of zones.”

The government launched enterprise zones in April 2012 as part of their ‘long-term economic plan’, aiming to give all parts of the economy, not just those based in the South East, the tools to thrive. The Chancellor announced the further expansion of the programme as part of his summer Budget.

The zones, which are delivering a multi-billion boost to local economies, offer a number of benefits including tax incentives, simplified planning and superfast broadband for firms.

Notable successes include:

• Bristol Temple Quarter Enterprise Zone has attracted 2,000 jobs since being declared open for business in April 2012. The jobs figure incorporates jobs in an impressive range of sectors including engineering, ICT, low carbon and the creative industries. The success of the enterprise zone is set to continue, with the number of new jobs forecast to reach 4,000 in 2017.
• Tees Valley Enterprise Zone is building a reputation for attracting leading global companies including Air Products and Lotte Chemicals. There have been 14 private sector investments located across the 12 sites generating over £750 million of private sector investment.

To ensure more places can reap the benefits that come with having an enterprise zone, all Local Enterprise Partnerships (LEPs) now have the opportunity to bid for a zone in their area. Success will bring businesses choosing to locate there a number of benefits including:

• up to 100% business rate discount worth up to £275,000 per business over a 5-year period
• 100% enhanced capital allowances (tax relief) to businesses making large investments in plant and machinery on zones in assisted areas
• 100% retention of business rate growth for LEPs, to enable them to fund development on enterprise zones

 

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SRJ
04.09.15