Humber and Sheffield Enterprise Zones welcome Budget tax incentives
Sheffield City and Humber Region Enterprise Zones have declared their support for new business tax incentives being extended for a further three years, under measures announced by the Chancellor in the Budget.
The business rates incentive lasts for five years per company and could be worth up to €400,000, depending on the size of its business rates bill.
In addition, on sites where enhanced capital allowances are available, businesses now have until March 2020 to make a qualifying investment, and can then write off up to £100m against corporation tax.
James Newman, Chairman of the Sheffield City Region Local Enterprise Partnership, said: “The LEP welcomes this news in the Budget which will make our Enterprise Zone even more attractive to investors looking to bring their business and create new jobs in the Sheffield City Region.
“Today’s Budget means that investors can access the top levels of tax incentives in Sheffield City Region until 2020.
“This news is hot-on-the-heels of our announcement last week that we have negotiated a deal with Government to expand our Enterprise Zone to add new strategic sites including Doncaster Sheffield Airport.
“Since its launch in 2012, 18 new companies have located on our Enterprise Zone with 345 jobs already created on site and around 300 set to be created in the coming months.”
Local Growth Minister Kris Hopkins said: “Sheffield City Region Enterprise Zone is already establishing itself as a hotbed of innovation and centre for thousands of new jobs, business and growth.
The Government recently agreed to expand the Zone adding additional strategic sites, including the land next to Doncaster Sheffield Airport.
This means that investors looking to set up in Sheffield City Region will be able to access tax breaks across a new range of prime sites.
Sheffield City Region is leading the way on Enterprise Zones with a report produced by the Financial Times ranking it top for attracting foreign direct investment (fDi).
In the Humber Region, capital allowances which are available on four of our enterprise zone sites - Green Port Hull, Queen Elizabeth Dock, Paull and Able Marine Energy Park - allowed businesses to deduct the costs of qualifying plant and machinery to a maximum of £100m to offset against corporation tax if the investment is made before April 2017.
The incentive, which could be worth up to £10m per company, will now be available until April 2020.
Local Growth Minister Kris Hopkins said: “Today’s announcement means Humber will continue to be an attractive location for businesses to locate and invest, and will help them achieve their ambition to become the centre of the global offshore wind industry.
“This is part of our long term economic plan to back businesses right across the country, and it will create more jobs for local people.”
Lord Haskins, Chair of the Humber LEP, said: “We are pleased that the Enhanced Capital Allowances and discounted business rates have been extended as it means more businesses wishing to invest in the Humber will get the chance to reap the benefits.
“Keeping these incentives in place is an important signal of the Government’s continued confidence in the Humber to deliver, and recognition of the significant potential we have to attract businesses here – particularly in the energy sector.
At 484 hectares, equivalent to 780 football pitches, the Humber has the largest Enterprise Zone in the country.
It is the UK’s largest development site next to a deep water port and has huge potential for the new offshore renewables industry.