The new wave of Enterprise Zones

Abstract

Besides the government’s clear commitment to reducing the deficit and national debt, there is also recognition that government has a role to play in enabling the private sector to flourish, and the economy to grow. The ‘Plan for Growth’ set out reforms aimed at breaking down barriers to enterprise, and the DCLG’s part in the growth agenda focuses on activities to all of which the introduction of Enterprise Zones (EZs) contributes. The government is very aware of the lessons learned from the EZs introduced in the 1980s and 1990s, which in some cases were expensive and created only a short-term boom. Today’s zones will concentrate on stimulating areas where there is strong potential for new jobs to be delivered quickly. The decision as to the location of the zones rests with Local Enterprise Partnerships — groups of business and civic leaders tasked with creating the right conditions for growth — which have been given a great deal of freedom in selecting EZ sites. Some areas have agreed two or more smaller sites, or are looking at a town centre location, focusing their EZs on specific sectors with good growth potential. To the first wave of 11 EZs allocated in the Budget of 2011, 11 more have now been allocated by competition. This generation of EZs will build on their economic potential to deliver growth and contribute to a flourishing economy.