Since the introduction of enterprise zones in the UK, thousands of small businesses have benefited from the business rate incentives, investment opportunities and boost to the commercial property stock in their local area. However, it has now emerged that the zones will also contribute to the greater good of the wider public, with more than £410 million to be invested by local partners into infrastructure schemes in the New Year.
According to Local Growth Minister Penny Mordaunt (pictured), the formation of enterprise zones have allowed councils to channel spending into crucial infrastructure upgrades which will both pave the way for future developments and boost the UK’s construction sector. Furthermore, these knock on effects will allow UK businesses to create tens of thousands of new jobs, further strengthening the country’s economic recovery.
One of the areas which will benefit most from the government’s decision to put business rates growth from local enterprise zones into the hands of councils is Birmingham, which will see work begin on both the regeneration of Paradise Circus and the construction of the HS2 railway next year. Both of these projects are being heavily supported by Birmingham City Council which, thanks to the support of its local enterprise partnership, has secured funding of up to £275 million for future projects within the Birmingham Enterprise Zone.
Chairman of the Greater Birmingham and Solihull Local Enterprise Partnership, Andy Street, claims that the decision to locate Birmingham’s enterprise zone in the city centre has allowed the council to “retain the greatest amount of business rates and borrow against future uplift.”
He continues; “Our exploitation of this financial model is unique in the country – we have developed a £275 million investment plan that has already kick started development within the enterprise zone and will help to transform the city centre.
“The impact will not stop there, however, with £50 million of funding allocated to support the development of our two HS2 stations, Curzon and Interchange, and £20 million to local enterprise partnership-wide projects.
“This is an exciting time for Greater Birmingham and business rate income generated in the enterprise zone is helping to fuel this renaissance.”
So far, the UK has established 24 enterprise zones since the scheme was launched in April 2012. A recent study has shown that, during that time, they have generated more than £2 billion worth of private investment and attracted 434 new businesses, which have in turn created employment for 12,530 British workers.
Ms Mordaunt believes that other enterprise zones will be able to emulate the success seen in Birmingham by following the West Midland city’s example.
She says; “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.”
