Carlisle is to become an Enterprise Zone it was announced today, but what does that mean?

What are Enterprise Zones meant to do? 

Enterprise Zones create jobs and boost businesses in 24 areas across England are designed to bring a boost to the local economy with a range of business incentives.

What are the benefits to businesses of being in an Enterprise Zone?  

  • Up to 100 per cent business rate discount worth up to £275,000 per business over a 5 year period Simplified local authority planning, for example, through Local Development Orders that grant automatic planning permission for certain development (such as new industrial buildings or changing how existing buildings are used) within specified areas
  • Government support to ensure that superfast broadband is rolled out throughout the zone, and, if necessary, public funding 100 per cent enhanced capital allowances (tax relief) to businesses making large investments in plant and machinery on 8 Zones in Assisted Areas

Are there any other likely impacts? 

Planning rules are simplified to remove the bureaucracy frequently cited by businesses as one of the biggest obstacles to growth.

How many jobs will be created in Carlisle by an Enterprise Zone?

It is claimed that up to 3,000 jobs will be created.

Where will the Enterprise Zone be?

The application focused on Carlisle’s Kingmoor Park.

The business park is already home to more than 100 firms supporting approximately 2,000 jobs with a capacity for nearly two million square feet of office, industrial and warehouse space. Yet around 60 per cent of the site’s overall 122 hectares is still available for development, with the potential to support another 3,000 jobs.

Did we know this was coming?  

During the election George Osborne said the Zone would be announced within 100 days of any Tory. Nearly, George, but we won’t quibble.

Is there anything not to like about Enterprise Zones?

Some people fear that they just encourage jobs and businesses to move from one area to another rather than creating new jobs. It will be interesting to see what the impact is in Cumbria. Speaking about a Midlands scheme John Rider, chair of the West Midlands Institute of Directors, said: "I think the concept is reasonable but the reality was that they displaced people's jobs over the boundaries into the enterprise zones."

Established in 2012, Enterprise Zones are at the heart of the government’s long term economic plan, supporting businesses to grow. Since their start in April 2012 they have laid down the foundations for success for 540 businesses, attracting over £2.2 billion pounds of private sector investment, building world class business facilities and transport links and attracting 19,000 jobs. Momentum is now building across the programme and many zones are poised for substantial development in the coming months and years. A new bidding round will bring new opportunities for new zones.

Will the Enterprise Zone help local councils?

All business rates growth generated by the Enterprise Zone is kept by the relevant local enterprise partnership and local authorities in the areas for 25 years to reinvest in local economic growth. So if more businesses start up there is a direct incentive to local authorities.