17 Aug 2011
Following the announcement by David Cameron of the second wave of Enterprise Zones designed to kick-start the UK economy, the British Property Federation (BPF) has welcomed the focus on areas with clear growth potential.
However, speaking as new data showed that unemployment rose by 38,000 in the three months to June, the BPF expressed concern that the incentives on offer would be too little to spur development in many areas.
Liz Peace, chief executive of the British Property Federation, said: “It is right that Government focuses on areas that have growth potential rather than purely social and economic deprivation. These locations and the resulting development should be capable of sustaining the businesses, development and jobs beyond the duration of enterprise zone designation.
“However, the incentives on offer, while welcome, may not be sufficient to get development going in many cases. Enterprise Zones may be helpful in putting a focus on particular areas but ultimately development will only happen if the incentives are sufficient.
“That said, we welcome the indication that the Government views this policy as an evolving one and that the incentives currently on offer may be a starting point, rather than the end of the story. In particular, it will be essential to devise flexible sets of incentives that can be tailored to the different needs and contexts of different EZs.”
Earlier today the Prime Minister unveiled eleven new locations, describing them as “trailblazers for growth” that will benefit from simplified planning rules, super-fast broadband and over £150m tax breaks for new businesses in the next four years. Locations include: