Member Article

Enterprise Zones could be the future

Plans to create 21 low-tax enterprise zones to stimulate private sector growth in poorer areas on Teesside and throughout the UK has drawn praise from business leaders.

Companies will reportedly get up to a 100% discount on rates, capped at £275,000 spread over five years, and could receive tax breaks on capital investments in areas where advanced manufacturing dominates.

They should have access to superfast broadband and local authorities will retain any increase in rates for 25 years to plough back into development.

The zones will be associated with local enterprise partnerships, the groups of local authorities and businesses charged with driving economic development in their regions.

The first 11 will be within the big conurbations, including Birmingham and Solihull, Leeds, Sheffield, Liverpool, London and the Tees Valley.

Ray Mallon, Middlesbrough’s elected mayor, called them a “major boost to new business”.

Ross Smith, of the North East Chamber of Commerce, added: “We are encouraged by the imaginative range of measures on offer in enterprise zones and we must make sure these are fully exploited in the two areas we will get immediately in the North East.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .