Go-ahead expected for zones to boost economy

MINISTERS are today expected to confirm the locations for Yorkshire’s first two tax-break enterprise zones to boost jobs and growth in the Leeds and Sheffield city regions.

The Government is set to approve plans for the Aire Valley to the south-east of Leeds and sites linked to advanced manufacturing in South Yorkshire as enterprise zones.

The zones will offer companies business rate discounts, tax breaks, planning short cuts and access to super-fast broadband while allowing any increase in business rates over 25 years in these areas to stay within the local economy.

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The sites were initially chosen by Local Enterprise Partnerships (LEPs) for both Leeds and Sheffield city regions and submitted to Government for approval.

The Aire Valley in south-east Leeds was chosen as the preferred site by the Leeds City Region’s LEP last month ahead of Bradford city centre, Selby and the Wakefield M62 corridor. The massive regeneration site had been the favourite since Chancellor George Osborne announced his plans to resurrect the idea of Enterprise Zones in this year’s budget.

Ministers are set to approve plans for both Aire Valley and an enterprise zone for the Sheffield City Region.

Sheffield LEP’s proposed zone takes in three sites around the Advanced Manufacturing Park at Waverley and Sheffield Business Park, manufacturing land at Markham Vale and an area in the Dearne Valley close to “existing eco-vision developments.”

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From next April businesses setting up in the zones will be able to get discounts on business rates up to a maximum £275,000 over five years, and a fast-track approach to planning applications which could save them having to seek permission from the council .

The Government have also said that any growth in business rates within these zones for at least 25 years: “will be retained by the local area, to support the LEPs’ economic priorities and ensure that Enterprise Zone growth is reinvested locally”.

The policy also says public funding will be made available if necessary to ensure businesses in the zone have access to super-fast broadband.

The first four enterprise zones in the country were allocated to the Royal Docks in London, Boots campus in Nottingham, Manchester Airport and Liverpool Waters.

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The Government’s Budget this year announced that 21 zones would be created – which includes Yorkshire’s first two.

LEPs were created by the Government to drive growth following the abolition of regional development agencies.