Press release

The Government announces 11 new Enterprise Zones to accelerate local growth, as part of the Plan for Growth

The location of eleven new Enterprise Zones, designed to boost local growth and create over 30,000 new jobs by 2015, were announced today.

The location of eleven new Enterprise Zones, designed to boost local growth and create over 30,000 new jobs by 2015, were announced today by the Prime Minister, David Cameron, the Chancellor of the Exchequer, George Osborne, and the Communities Secretary, Eric Pickles.

At Budget the Government announced 11 Enterprise Zones in some of the country’s largest cities, including Manchester, Birmingham, Merseyside and Newcastle, as well as inviting applications for 10 more in other areas.

The strength of the applications from Local Enterprise Partnerships was such that Government has agreed to increase this invitation to 11. The location of Zones in the Black Country, Tees Valley and the North East have also been agreed today. This brings the total to 22 Enterprise Zones across the country, helping to create thousands of new jobs by 2015. The Zones will attract hundreds of new start up firms, with simplified planning rules, super-fast broadband and over £150 million tax breaks for new businesses over the next 4 years.

Alongside the new Zones, the Government is also announcing today that it will make enhanced capital allowances available for plant and machinery investment to a limited number of Enterprise Zones in Assisted Areas, including the Tees Valley and North East. With effect from 2012, companies setting up in these areas will be eligible to claim enhanced first year allowances for plant and machinery, giving them an upfront cash flow benefit.

The introduction of Enterprise Zones is just one of over 100 reforms being taken forward as part of the Government’s Plan for Growth, announced at Budget 2011, to create the conditions for strong, sustainable and balanced growth.

The second wave of Enterprise Zone will be located in:

  • Humber Estuary Renewable Energy Super Cluster;
  • Daresbury Science Campus, near Warrington and Runcorn;
  • Newquay AeroHub in Cornwall;
  • The Solent Enterprise Zone at Daedalus Airfield in Gosport;
  • MIRA Technology Park in Hinckley Leicestershire;
  • Rotherwas Enterprise Zone in Hereford;
  • Discovery Park in Sandwich, Kent and Enterprise West Essex in Harlow;
  • Science Vale UK in Oxfordshire;
  • Northampton Waterside;
  • Alconbury Airfield, near Huntingdon in Cambridgeshire; and
  • Great Yarmouth in Norfolk, and Lowestoft in Suffolk.

Ministers are urging areas that missed out today to remain ambitious and pursue their innovative ideas to foster local enterprise.

The Prime Minister, David Cameron, said:

We are determined to do everything we can to make Britain the best place in the world to start and grow a business.

Enterprise Zones are a major step towards delivering this; cutting business taxes, easing planning restrictions and giving business the tools they need to invest and expand.

These new Enterprise Zones will be trailblazers for growth, jobs and prosperity throughout the country.

The Chancellor, George Osborne, added:

It is vital that we create balanced economic growth across the country. It is time for us to help every part of the country to grow and realise its potential.

Enterprise Zones are a critical part of our Plan for Growth and will support economic development and create over 30,000 new jobs by 2015. The zones will benefit from over £150 million in tax breaks over 4 years, new superfast broadband, lower levels of planning control and the potential to use enhanced capital allowances. 

Communities Secretary, Eric Pickles, said:

Too many of our towns and cities have been left behind, but the answer has never been to impose ineffective sprawling regional structures. It is local business and commerce that drive the private sector growth, jobs and wealth this country needs. This Government’s job is to foster local enterprise and create the conditions for businesses to thrive in. That is why low tax, low regulation Enterprise Zones are being planted across the country and will give businesses all the incentives they need to grow their local economy and create thousands of new local jobs.

Business Secretary, Vince Cable, said:

Enterprise Zones are creating an environment for businesses to grow in places with the most potential. Those the government is announcing today, on top of those already approved, show the range of ambitious plans in place across the country.

Local Enterprise Partnerships have worked closely with businesses in their communities to put forward a range of high-quality proposals. The successful bids they will now take forward are going to help inject new growth into their economies.

Across England, these Zones will generate new jobs, investment in areas that can benefit, and develop high-tech products that will secure long-term sustainable prosperity.

Notes for editors

  1. To encourage investment and exports as a route to a more balanced economy, the Government announced at Budget 2011 that it would establish 21 new Enterprise Zones with superfast broadband, lower taxes, and low levels of regulation and planning controls.

  2. The first round of Enterprise Zones was announced in the Budget 2011 and will be based within the following eleven local enterprise partnerships: Birmingham and Solihull, Sheffield City Region, Leeds City Region, Liverpool City Region, London, Greater Manchester, West of England, the Black Country, Derby and Nottingham, Tees Valley and the North East. More details can be found at: https://www.gov.uk/government/news/first-4-new-generation-enterprise-zone-locations-identified

  3. A further announcement on the exact location of Birmingham, Bristol, Leeds and Sheffield Enterprise Zones was made in late July.

  4. 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.

  5. Enterprise Zones will benefit from:

    • A 100% 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 LEP 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.
  6. 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.

  7. The Government is also keen to support the introduction of Enterprise Zones in Scotland, Wales and Northern Ireland, if the Devolved Administrations wish to establish them. Government will hold further discussions with the Devolved Administrations about how best to do this.

  8. Thirty local enterprise partnerships submitted bids for one of the limited Enterprise Zones places available in this second wave competition.

  9. However, Ministers are urging areas that missed out today to remain ambitious and pursue their innovative ideas to foster local enterprise. Every area can still put together a deal for local growth. Councils have the power to implement a simplified planning regime for themselves and UK Trade and Investment is ready to work with all areas to attract foreign direct investment.

  10. In addition they will be able to harness Tax Incremental Financing powers, to finance new infrastructure by borrowing against increases in business rates, locally funded business rate discounts and the local retention of business rates when they become law. This will give councils a direct stake in the local economy and new ways to support business growth.

  11. Details of the 11 Enterprise Zones selected today:

    Rotherwas Enterprise Zone - in Hereford led by the Marches Local Enterprise Partnership proposes:

    • Size: three sites covering 61.5 hectares;
    • Sector focus: defence, advanced engineering, green technologies and food processing;
    • Tax break: Save business £4 million in forgone business rates;
    • Job creation: Local Enterprise Partnership estimates at least 55 businesses and 1,800 jobs will be created by 2015;
    • Planning: Simplified regime to provide certainty for business wanting to build;
    • Broadband: Wireless service 20MB line speeds but can deliver 100MB speeds.  A fibre optic option available through the Hereford BDUK Superfast Broadband project (up to 100MB) by 2013;
    • Investment: Expecting at least £90m from the private sector by 2015.

    Northampton Waterside Enterprise Zone - led by the South East Midlands Local Enterprise Partnership proposes:

    • Size: 120 hectares;
    • Sector focus: advanced technologies, precision engineering, low carbon technology, sustainable construction, and high performance engineering, supported by related professional, financial, leisure and business services;
    • Tax break: Save businesses £19.9 million in forgone business rates;
    • Job creation: Local Enterprise Partnership estimates 390 new businesses and 12,400 new jobs by 2015;
    • Broadband: Exploring delivery of superfast broadband with suppliers;
    • Investment: Anticipate over £200m from private sector.

    Newquay Aerohub Zone - led by the Cornwall and Isles of Scilly Local Enterprise Partnership proposes:

    • Size: 1 site covering 55 hectares;
    • Sector focus: aerospace;
    • Tax breaks: Save businesses £2.4million in forgone business rates;
    • Job creation: 1,100 new jobs by 2015;
    • Planning: Simplified regime; opening up the site for aviation development on the aerodrome and for the business park and aviation related business development;
    • Broadband: Access to Superfast Cornwall broadband £132m project is up and running.

    Alconbury Airfield Zone - near Huntington, led by the Greater Cambridge and Greater Peterborough Local Enterprise Partnership proposes:

    • Size: 150 hectares;
    • Sector focus: ICT, biotech, pharmaceutical, advanced manufacturing, creative industries, engineering and processing;
    • Tax breaks: Save businesses £5.9 - £6.3 million in forgone business rates;
    • Job creation: Local Enterprise Partnership estimates 25-40 new businesses and 1,500 jobs by 2015;
    • Planning: Simplified regime permitting the change of use of existing buildings and building new ones;
    • Investment: Looking to attract international investment with UKTI support.

    Great Yarmouth and Lowestoft Enterprise Zone - led by the New Anglia Local Enterprise Partnership proposes:

    • Size: Six sites covering 121 hectares - close to the ports - South Denes, Beacon Park, Ellough Industrial Estate, South Lowestoft Industrial Estate, Mobbs Way and Riverside Road;
    • Sector focus: energy sector (including offshore wind) and broader focus on ports, logistics, construction and engineering;
    • Tax breaks: Save businesses £3.8 million in forgone business rates;
    • Job creation: Local Enterprise Partnership estimates 80 businesses and 1,380 jobs by 2015;
    • Planning: Existing simplified regime for all development relating to the energy cluster;
    • Broadband: Norfolk just gained BDUK funding to improve broadband and has bid for £1m of ERDF funding to significantly improve coverage.

    Daresbury Science and Innovation Zone - between Warrington and Runcorn, led by Liverpool City Region and Greater Manchester Local Enterprise Partnerships proposes:

    • Size: 28 hectares;
    • Sector focus: science and technology;
    • Tax break: Save businesses £3.1 million in forgone business rates;
    • Job creation: Local Enterprise Partnership estimates that 1000 new jobs and at least 32 businesses could be created by 2015;
    • Planning: Simplified planning regime on course;
    • Broadband: Access to a high speed 100 MB internet connection scaleable to demand. Academic partners on site are able to utilise the very high speed Superjanet Network;
    • Investment: Seeks to attract significant numbers of high quality inward investment projects.

    Humber Waterside Enterprise Zone - in Kingston upon Hull, led by Humber Local Enterprise Partnership proposes:

    • Size: 375 hectare site;
    • Sector Focus: offshore wind Original Equipment Manufacturers 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.

    Discovery Park in Sandwich and West Essex Enterprise Zonein Harlow - led by the Kent, Essex and East Sussex local enterprise partnership proposes:

    • Size: Sandwich site will be 99.4 hectares;
    • Sector Focus: Sandwich will focus on life sciences, pharmaceutical, bio-technology and broader R&D (including chemicals, food and renewable energy). Harlow will focus medical technologies and advanced manufacturing;
    • Tax breaks: Sandwich will save business £21.4 million;
    • Job creation: Local Enterprise Partnership estimates that Sandwich will create 2400 jobs and 190 businesses and Harlow will create 100 businesses 2,200 - 2,570 jobs by 2015;
    • Planning: simplified regime will cover change of uses without the need for planning permission to be sought. Harlow will facilitate those businesses in the health and allied industries and advanced manufacturing sectors;
    • Broadband: There are excellent data (broadband) connections at Sandwich.

Science Vale Enterprise Zone - led by the Oxfordshire local enterprise partnership proposes:

  • Size: 2 sites covering 92 hectares;
  • Sector Focus: green technology, advanced materials and engineering, space and other high value R&D (e.g. medical technologies, bio-technologies and cryogenics);
  • Tax breaks: Save business £29.8 million in forgone Business Rates;
  • Job creation: Local Enterprise Partnership estimates 200 businesses and between 6,250 - 10,500 jobs by April 2015.

MIRA Technology Park in Hinckley - led by the Leicester and Leicestershire local enterprise partnership proposes:

  • Size: one site covering 87.5 hectares;
  • Sector Focus: R&D, including automotive, aerospace, transport, defence and manufacturing;
  • Tax breaks: Save business £800,000 - £1.9 million in forgone business rates;
  • Job creation:  Local Enterprise Partnership estimates 12 businesses and 800 jobs by 2015;
  • Broadband: Plans for superfast broadband roll out;
  • Investment: UKTI have expressed their willingness to support international marketing effort.  Local Enterprise Partnership have also bid for regional growth funding.

The Solent Enterprise Zone at Daedalus Airfield in Gosport - led by the Solent local enterprise partnership proposes:

  • Size: one site covering 82 hectares;
  • Sector Focus: R&D, including automotive, aerospace, transport, defence and manufacturing;
  • Tax breaks: Save business £2.7 million in forgone business rates;
  • Job creation: Local Enterprise Partnership estimates 38 - 45 businesses and 650 jobs by April 2015;
  • Planning: is a master planned site and the current planning applications are intended to provide outline planning consents for development over the long term;
  • Broadband: Discussions are ongoing about best broadband provision;
  • Investment: UKTI have expressed their willingness to support international marketing effort. Local Enterprise Partnership have also bid for regional growth funding.

Details of the locations of Sites locations in Black Country, Tees Valley and the North East agreed today:

North Eastern Enterprise Zone- led by the Local Enterprise Partnership proposes:

  • Size: two sites covering 117 hectares;
  • Sector focus: low carbon;
  • Tax break: save business money in forgone business rates;
  • Job creation: Local Enterprise Partnership estimates nearly 1,000 jobs will be created by 2015;
  • Floorspace: total developable floor space nearly 500,000 square metres;
  • Planning: Simplified regime to provide certainty for business wanting to build.

Black Country Enterprise Zone - led by Local Enterprise Partnership proposes:

  • Size: two sites covering 120 hectares; one site ‘i54’ falls across the boundary between the Black Country lep area and the Stoke-on-Trent and Staffordshire lep area. The two partnerships have agreed to share the costs and proceeds of developing the site;
  • Sector focus: advanced manufacturing including aerospace, automotive and engineering and environmental technologies;
  • Tax break: Save business money in forgone business rates;
  • Job creation: Local Enterprise Partnership estimates that 3,843 net jobs will be created by 2015;
  • Floorspace: total developable floor space over £500,000 square metres;
  • Planning: Simplified regime to provide certainty for business wanting to build.

Tees Valley Enterprise Zone - led by the Local Enterprise Partnership proposes a number of sites across Tees Valley.

  • Sector focus: petrochemicals and renewable energy, primarily spread on both banks of Tees estuary;
  • Tax break: save business money in forgone business rates and capital allowances;
  • Job creation: support the creation of 137 new businesses and over 2,624 jobs, business rate relief sites to be funded locally, will further support the creation of 29 businesses and 360 jobs. This gives a total number of 166 businesses and almost 3,000 jobs by 2015;
  • Planning: simplified regime to provide certainty for business wanting to build.

The tax break figures quoted above are estimates based on information provided by Local Enterprise Partnerships within their bids, and on expert advice from the Valuation Office Agency. The estimates are an informal expression of opinion, without prejudice to any rating list alteration that may eventually be made. Estimates are adjusted for the effects of the state aid de minimis where possible. Cost estimates cover the period from 2012-13 to 2015-16.

Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hmtreasury.gsi.gov.uk

Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238.

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