Enterprise zones have enabled councils to channel hundreds of millions of pounds into crucial infrastructure projects by allowing them to take advantage of top-class investment incentives that are driving forward the economy, Local Growth Minister Penny Mordaunt has announced.
More than £410 million will be spent by local partners on major projects across the country, unlocking development and paving the way for tens of thousands of new jobs as well as providing a significant boost to the UK’s construction sector.
This significant investment has been possible since the government gave councils powers to retain all business rates growth from their local enterprise zone and use the revenue generated to secure borrowing for infrastructure projects.
Local Growth Minister Penny Mordaunt said: "This just shows what can be achieved when you marry ground-breaking ambition with smart incentives. This investment will deliver world-class infrastructure that ensures enterprise zones continue to attract brilliant companies, creating jobs and delivering real benefits to hard-working people.
"It’s proof our long-term economic plan is on track and I know for a fact this is just the beginning. Other enterprise zones are taking note and I’m expecting to see even greater investment in the future, which is great news for the economy."
The government launched its enterprise zone programme in April 2012 as part of its long-term economic plan to rebalance the economy.
Led by local enterprise partnerships and councils, the 24 zones are going from strength to strength with recent numbers showing they have created 12,530 jobs, attracted 434 new businesses and generated over £2 billion worth of private investment.
The zones offer a range of business incentives to help companies grow, including super-fast broadband, simplified planning and top-class tax incentives.
Authorities are funding many of the infrastructure improvements through the Tax Increment Financing mechanism. This allows them to borrow against the expected increase in business rates that will flow from enterprise zones as a result of the infrastructure improvements.
Furthermore, companies moving to enterprise zones will benefit from improved access to their markets and clients thanks to a £15 billion overhaul of our roads.
The government recently announced its Road Investment Strategy, which will boost capacity and tackle congestion across vast parts of England’s motorways and major A-roads, including a number of key routes servicing the business parks.
With 90% of journeys taking place on our roads, the Road Investment Strategy is vital for the country’s economic revival and will triple the levels of money spent on our national roads by the end of the decade.
More than 1,300 new lane miles will be delivered over the next parliament on motorways and trunk roads, tackling congestion and fixing some of the most notorious and longstanding problem areas on the network.
