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Enterprise Zones: enhanced capital allowances will be 'limited'

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Enhanced capital allowances will be available for plant and machinery investment in designated areas in a limited number of Enterprise Zones, the government announced as it named 11 new Enterprise Zones in England.

The new zones will benefit from business rate discounts, ‘radically simplified’ approaches to planning, and government support ‘to ensure superfast broadband is rolled out’.

Deloitte said the detail around some of the zones was ‘patchy’. A map showing Enterprise Zones and Local Enterprise Partnerships is available on the website of the Department for Communities and Local Government.

The Welsh Government is being urged to finalise plans for Enterprise Zones amid ‘fears those in England may attract businesses away from Wales’, the BBC reported last week.

George Osborne, the Chancellor, said Enterprise Zones will create over 30,000 new jobs by 2015: ‘The zones will benefit from over £150 million in tax breaks over four years, new superfast broadband, lower levels of planning control and the potential to use enhanced capital allowances.’

Enhanced capital allowances will be available only ‘where the government and Local Enterprise Partnership agree that it is better for the local economy to focus on a smaller number of companies making significant capital intensive investments’.

The vast majority of Enterprise Zones will retain a focus on attracting greater volumes of companies through business rate discounts, the government said.

The second round of Enterprise Zones will be located in:

  • Humber Estuary Renewable Energy Super Cluster
  • Daresbury Science Campus in Warrington
  • Newquay AeroHub in Cornwall
  • The Solent Enterprise Zone at Daedalus Airfield in Gosport
  • MIRA Technology Park in Hinckley Leicestershire
  • Rotherwas Enterprise Zone in Hereford
  • Discovery Park in Sandwich, Kent and Enterprise West Essex in Harlow
  • Science Vale UK in Oxfordshire
  • Northampton Waterside
  • Alconbury Airfield, near Huntingdon in Cambridgeshire
  • Great Yarmouth in Norfolk, and Lowestoft in Suffolk.

The first round of 11 Enterprise Zones, announced at Budget 2011, will be based in:

  • Birmingham and Solihull
  • Sheffield
  • Leeds
  • Liverpool
  • London
  • Manchester
  • West of England
  • the Black Country
  • Derby and Nottingham
  • Tees Valley
  • the North East.

Source: Department for Communities and Local Government