Budget 2011 announced that Government would establish 21 new Enterprise Zones in LEP areas. Budget named the first 11 LEPs that would benefit from the Zones. A competition for the further 10 Enterprise Zones in the remaining LEPs was also announced.
Enterprise Zones are a powerful expression of the Government's pro-growth agenda; allowing areas with real potential to create the new businesses and jobs that they need, delivering positive benefits across the wider economic area. The core offer for businesses in the Zone is around simplified planning and business rates discounts, with Zones having the potential to develop innovative solutions to address the specific local economic challenges.
The 11 LEPs named in the Budget as hosting the first phase of Zones were chosen with a focus on city regions and those areas that have missed out in the last ten years, as well as areas that have potential for growth. For the second wave of Enterprise Zones, LEPs have been asked to come forward with bids – with the presumption being that only one designation will be made per partnership.
The role of LEPs
Only LEPs, on behalf of all their partners, will be able to bid for an Enterprise Zone. LEPs, as business-led partnerships with a goal of driving sustainable economic growth across local economic areas, are ideally placed to drive Enterprise Zones forward.
The LEP will need an agreed position on the location, sectoral focus and range of incentives within a Zone it hosts. This will be an important means through which to minimise local displacement of businesses. The LEP’s role will be to identify the barriers which are impeding the growth of the local economy and the necessary options from the menu on offer to overcome such barriers.
Timetable for Phase 2 Enterprise Zones
- May: Expressions of interest submitted and criteria circulated
- May – end of June: LEPs will develop their proposals and submit them.
- July: Government will assess the proposals against the criteria and announce successful bids by the summer.
