Enterprise zones
Enterprise zones are intended to encourage growth and create new businesses and new jobs by allowing simplified planning procedures and through business rates discounts.
The government originally intended to establish 21 enterprise zones in Local Enterprise Partnerships (LEPs) areas. LEPs are business-led partnerships created to drive sustainable economic growth across local economic areas. LEPs are able to bid for enterprise zones.
Enterprise zones are geographically defined areas, usually 50 to 150 hectares, agreed between the LEP and government. Enterprise zones are created in areas of 'economic opportunity', generally on ‘clean’ sites, i.e. sites with few existing business occupants.
Enterprise zones benefit from a number of provisions:
- A business rate discount of up to 100%, (limited by EU law to a maximum of approximately £55,000 per year) for five years. The government reimburses the local authority the cost of the discount.
- Business rates growth for at least 25 years is retained and reinvested locally to support the LEP’s priorities.
- Simplified planning procedures are adopted. This is generally done through the use of Local Development Orders, which can allow development without the need for planning permission. Local Development Orders can be used to permit any type of development in a particular area, or to permit a specific type of development. Conditions can be attached to the developments. The process of drafting a Local Development Order, carrying out public consultation and notifying the Secretary of State can take as little as two months.
- The government provides support, which can include funding, to ensure that 'superfast' broadband is made available throughout the enterprise zone.
- The government can make enhanced capital allowances for plant and machinery in areas within enterprise zones where there is a strong focus on manufacturing.
In the 2015 Budget, Chancellor George Osborne suggested that enterprise zones had created over 12,500 jobs and attracted £2bn in private investment, and announced that a number of existing enterprise zones would be expanded and new enterprise zones created in Blackpool and Plymouth. (Ref. Gov.uk Budget 2015 documents.)
In March 2016, Communities Secretary Greg Clark announced that England’s 39 Local Enterprise Partnerships would be able to apply for a share of £1.8 billion to support projects in their areas. (Ref. gov.uk.)
However, a report by the Comptroller and Auditor General of the National Audit Office, also published in March 2016, questioned the transparency of LEP’s and recommended clarification about how they fit with other bodies to which power and spending have been devolved, and suggested that specific quantifiable objectives and performance indicators were set out for the success of Growth Deals.
[edit] Related articles on Designing Buildings
- Business improvement district.
- Business rates.
- Capital allowances.
- Central business district (CBD).
- City centre.
- City deals.
- Cities Devolution Bill.
- Consultation process.
- Development corporation.
- Devolution.
- Devolution and development.
- Growth deals for local enterprise partnerships.
- Going for growth, Reviewing the Effectiveness of Government Growth Initiatives.
- Growth and Infrastructure Bill.
- Heritage perspectives on infrastructure.
- Local Development Orders.
- Local Enterprise Partnerships.
- Localism Act.
- New Town Development Corporation.
- Planning permission.
- Pink zones.
- Regeneration.
- Region.
- Sustainability.
Featured articles and news
The Building Safety Forum at the Installershow 2025
With speakers confirmed for 24 June as part of Building Safety Week.
The UK’s largest air pollution campaign.
Future Homes Standard, now includes solar, but what else?
Will the new standard, due to in the Autumn, go far enough in terms of performance ?
BSRIA Briefing: Cleaner Air, Better tomorrow
A look back at issues relating to inside and outside air quality, discussed during the BSRIA briefing in 2023.
Restoring Abbotsford's hothouse
Bringing the writer Walter Scott's garden to life.
Reflections on the spending review with CIAT.
Retired firefighter cycles world to raise Grenfell funds
Leaving on 14 June 2025 Stephen will raise money for youth and schools through the Grenfell Foundation.
Key points for construction at a glance with industry reactions.
Functionality, visibility and sustainability
The simpler approach to specification.
Architects, architecture, buildings, and inspiration in film
The close ties between makers and the movies, with our long list of suggested viewing.
SELECT three-point plan for action issued to MSPs
Call for Scottish regulation, green skills and recognition of electrotechnical industry as part of a manifesto for Scottish Parliamentary elections.
UCEM becomes the University of the Built Environment
Major milestone in its 106-year history, follows recent merger with London School of Architecture (LSE).
Professional practical experience for Architects in training
The long process to transform the nature of education and professional practical experience in the Architecture profession following recent reports.
A people-first approach to retrofit
Moving away from the destructive paradigm of fabric-first.
International Electrician Day, 10 June 2025
Celebrating the role of electrical engineers from André-Marie Amperè, today and for the future.
New guide for clients launched at Houses of Parliament
'There has never been a more important time for clients to step up and ...ask the right questions'
The impact of recycled slate tiles
Innovation across the decades.
EPC changes for existing buildings
Changes and their context as the new RdSAP methodology comes into use from 15 June.