EUKN - European Urban Knowledge Network

Enterprise Zones

Introduction

Enterprise Zones were introduced in 1980 to test a new approach to industrial and commercial renewal in areas of urban dereliction -the experiment was based initially on the establishment for ten years of about half-a-dozen Enterprise Zones where firms would benefit from such incentives as tax concessions, exemption from rates and relaxation of controls.

Problem

Enterprise Zones were initially designed to tackle the decline of large, older inner city areas. The initiative later moved on from tackling the problems of inner cities, to addressing problems caused as the result of massive losses of employment in coal-mining areas and from steel-making, shipbuilding and other major sources of employment upon which entire communities were dependent.

Description

The Office of the Deputy Prime Minister, ODPM , has evaluated the success of the UK practice of Enterprise Zones. It reports on a study that considered the effectiveness of the Enterprise Zone initiative, and identified elements that might be adapted for use in other urban policy schemes. Provides background information on the initiative and outlines the research methodology, which involved regional workshops and questionnaires. Reviews activity in the remaining Zones, looking at:

types of organisations;
premises;
staff;
current and proposed levels of investment;
interdependency between organisations.

Examines the lessons that can be learned from Enterprise Zones, focusing on:

location and transport infrastructure;
planning;
the economic environment;
local labour market issues.

Considers the implications for future policies, and highlights the key transferable lessons that were identified.

The full report is available online.

Approach

A total of some 38 zones were designated, 25 of them by April 1984. Each zone was designated to have a life of ten years. Each zone was expected to have a land area of about 500 acres (203 hectares) and firms located in the zones would benefit from a package of measures including:

100% tax allowances for capital expenditure on constructing, improving or extending commercial or industrial buildings;
exemption from Development Land Tax;
exemption from local authority general rates (now Business Rates) for industrial and commercial property;
exemption from industrial training levies, and from the requirement to supply information to industrial training boards;
simplified planning procedures, where developments conforming to the published scheme for each zone would not require planning permission;
faster processing of applications for firms requiring warehousing free of Customs duties;
a reduction in Government requests for statistical information.

Results

This study has shown that the Enterprise Zones have succeeded in stimulating new enterprise and in encouraging the growth of existing enterprises.

Beneficiaries

Those living and working in and around Enterprise Zones benefit.

Resources used

The initiative required the implementation of a range of fiscal incentives to aid enterprise development within the dedicated zone areas.

Contact info

Office of the Deputy Prime Minister
Phone: +44 207 944 4400
enquiryodpm@odpm.gsi.gov.uk

Project start date

01/01/1980

Links

Office of the Deputy Prime Minister Transferable lessons from the enterprise zones: full report

Document type

case

Themes

Urban Policy > Economy knowledge & employment > Urban economy

Keywords

Business support