What is an Enterprise Zone?
Enterprise zones were set up in 2012 to support growth for businesses as part of the Government’s long term economic plans. They are zones across England, Scotland, Wales and Northern Ireland, where a business can be entitled to tax breaks and government support. This could include a business rate discount of up to 100% over a five-year period or enhanced capital allowances, (a type of 100% first year allowance) for the purchase of equipment such as: plant and machinery items, bio gas & hydrogen refuelling equipment, zero-emission goods vehicles and equipment for electric vehicle charging points. N.B Only one of these can be chosen.
Companies can also benefit from simplified planning laws.
Currently there are 48 operational Enterprise Zones in England, 4 across 15 sites in Scotland, 7 in Wales and 1 in Northern Ireland.
As well as supporting growth for businesses the zones should also boost local economies. For 25 years any business rate growth goes to the local enterprise partnership and local authority so they can reinvest in other local enterprises.
The government also works with many of its departments to develop the infrastructure of the zone, to look at environmental issues and attract international investment.
Many of the enterprise zones are in cities, which will aid businesses looking for a large footfall and the price of commercial property tends to be cheaper.
For an example of the positive impact Enterprise Zones have had (although there is some doubt if they have delivered as much employment as was expected), take a look at this February 2022 analysis on the North East economy. which saw growth with new office space, laboratory, R&D facilities and industrial space.
Don’t forget you can search by area on NovaLoca to help you find commercial property for sale or to rent in the UK that meets your needs.
