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Greg Clark visits new enterprise zone for the Humber

The announcement of the successful Humber Enterprise Zone to drive local growth and create thousands of new jobs was followed today with a visit…

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

The announcement of the successful Humber Enterprise Zone to drive local growth and create thousands of new jobs was followed today with a visit by the Cities Minister Greg Clark.

Located on both banks of the Humber, the Enterprise Zone will accelerate local economic growth and create over 12,500 new jobs. The zone will offer discounts on business rates and fast-track planning control as well enhanced capital allowances.

The Humber Enterprise Zone is ambitious and will kick-start the development of a new manufacturing sector in the UK, focussed on the construction of off shore wind turbines. It will leverage existing assets and a high level of private sector investment and require only a relatively small contribution from the public purse to ensure jobs are created in the UK rather than abroad.

With the backing and support of Greg Clark, discussions about the best way to support local growth were cemented by the decision to form a Local Enterprise Partnership early in the summer. Without the decision to forge ahead and establish a partnership there would be no Enterprise Zone today.

The success of the bid has been a tremendous example of the public and private sectors coming together in order to work out what is best for the local area. Greg Clark has been instrumental in this process, bringing all parties together to explore the best options for growth.

Greg Clark said:

The decision to award Humber its own Enterprise Zone is great news for residents of the area, encouraging new businesses to flock to the site creating much needed jobs and prosperity.

I’ve been working over the past year with local business and civic leaders to make sure Humber can take up the reins of their local economy, and the Enterprise Zone is the culmination of those plans to accelerate growth. It shows what can be done when the public and private sector come together to remove the barriers to growth and create the conditions in which enterprise will flourish.

Never has there been a more important time to unleash the potential of our most important cities as engines for growth across the country.

John Clugston, Chair of the Humber Local Enterprise Partnership said:

Our Enterprise Zone will be crucial for attracting major investors in renewable energy to the UK. By helping us to bring in the biggest manufacturers and their supply chains, the Enterprise Zone takes us a  step closer to creating a super cluster on the Humber which will have  national and international significance. This would kick start a long term transformation in the fortunes of the Humber economy, so it is excellent news that the bid has been approved.

The geographic potential of the Humber is clear: it is the largest trading estuary in the UK and the fourth largest in Europe, with a chemical and process sector worth £6 billion a year and international expertise in logistics. However, unemployment is high in most of the main urban centres and wages are low. The Enterprise Zone will provide a huge boost to the area and is an exciting development for local businesses and residents.

Businesses in the Humber across all sectors have shown their enthusiasm about the opportunities for the developments in renewable energy, and are determined to capitalise on them.

The Humber Enterprise Zone is one of a few areas across the country that has secured Enhanced Capital Allowances on sites that will provide opportunities for businesses and help attract Foreign Direct Investment building on the key strengths of the area especially the skilled workforce.

Notes to editors

1. The Government also announced the allocation of funding for the UK’s broadband network yesterday, with English counties due to receive £294.8 million and Scotland £68.8 million. Further details can be found at: (external link).

2. Humber Enterprise Zone - led by the Humber Local Enterprise Partnership proposes:

  • Size: 375 hectares, across two sites in Kingston upon Hull and one site near Killingholme in North Lincolnshire;

  • Sector Focus: offshore wind Original Equipment Manufacturers (OEMs) and supply chain;

  • Tax breaks: Save businesses £7.9 million in forgone business rates;

  • Job creation: Local Enterprise Partnership estimates that 4,850 jobs could be created by 2015;

  • Planning: Simplified regime with a presumption - removing the need for specific planning permission with a single Local Development Order.

3. Enterprise Zones will benefit from:

  •  A 100 per cent business rate discount worth up to £275,000 over a five year period, for businesses that move into an Enterprise Zone during the course of this Parliament;
  • All business rates growth within the zone for a period of at least 25 years will be retained and shared by the local authorities in the Local Enterprise Partnership area to support their economic priorities;
  • Government and local authority help to develop radically simplified planning approaches in the zone; and
  • Government support to ensure superfast broadband is rolled out in the zone. This will be achieved through guaranteeing the most supportive environment and, if necessary, public funding.

4. The Government will make enhanced capital allowances for investment in plant and machinery available in designated areas within a limited number of Enterprise Zones. This is only available where the Government and Local Enterprise Partnership agree that it is better for the local economy to focus on a smaller number of companies making significant capital intensive investments. The vast majority of Enterprise Zones will retain a focus on attracting greater volumes of companies through business rate discounts.


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Published 18 August 2011