Member Article

North East to benefit from new enterprise zones

New North East enterprise zones have been announced following the Chancellor’s Autumn Statement.

‘North East Round 2’ and ‘The Tees Valley Enterprise Zone Growth Extension’ are among 26 new nation-wide zones, set to benefit from exemptions from business rates, faster broadband and enhanced capital allowances.

The announcement sees the doubling of the Enterprise Zone programme in the Northern Powerhouse, with seven new zones and two expanded zones.

The Tees Valley application is for an extension with three sites focused on the life sciences sector with emphasis on biologics and biopharmaceuticals, digital, creative and cultural and science and innovation.

The North East Rural bid is for a new 10 site Enterprise Zone and has a particular focus on sub-sea and offshore advanced manufacturing; automotive; life sciences and health; digital and technology based services, ranging along the A1 and a19 corridor from Berwick to County Durham.

North East Round 2 will comprise ten sites across Northumberland, Durham, Sunderland, Gateshead, South Tyneside and Newcastle.

Helen Golightly, North East LEP Chief Operating Officer, said: “Enterprise Zones provide us with a strong offer to business to locate and develop in the North East.

“We are committed to supporting business to grow and are delighted to be given the opportunity to build on the success of our first Enterprise Zone. The second EZ will help us deliver the strategic economic plan and deliver more and better jobs for the region.”

The LEP’s first EZ has been offering benefits to business in the offshore, renewables and automotive sectors since 2012. Since its creation, the EZ has attracted over £100 million of new private sector investment and resulted in over 1,200 new jobs and 25 new businesses.

This second EZ has been developed to complement and grow the region’s four key areas of strength, which are referred to as smart specialisation areas - Health and Life Science, Creative Digital, Automotive and Subsea and Offshore Renewables.

North East LEP Chairman, Paul Woolston, said: “I’m delighted about our successful bid for a second Enterprise Zone for the region.

“EZs exist to drive growth in the smart specialisation areas identified by the LEP. They will play a key role in supporting the creation of more high-quality jobs and attracting further private sector investment into the North East.”

Welcoming the announcements, the Prime Minister said: “Approving these new Enterprise Zones in the North East and Tees Valley is testament to the huge potential this region has to offer.

“It’s part of our long term economic plan for the area to create jobs, support and attract businesses, and increase investment, which in turn will help create new opportunities for people across the region and secure a brighter future here.”

Minister for Local Growth and the Northern Powerhouse James Wharton said: “Enterprise Zones are creating thousands of jobs, attracting billions of pounds of investment and yesterday’s announcement by the Chancellor is a ringing endorsement of the contribution they are making to the economy. As part of our long-term economic plan it is only right we allow more to share our national success.

“The government is building on the success of the existing 24 Enterprise Zones which by the end of last year alone had attracted 19,000 jobs. This new round of Enterprise Zones – which includes seven new zones in the Northern Powerhouse - will mean even more areas and businesses will be able to benefit from the support they bring.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →