Tax & admin Fred Heritage · 29 July 2016
Northern enterprise zones create record job numbers, yet regional economic imbalance remains
Enterprise zones in the North of England have created 8, 000 new jobs in the past four years, according to government reports, suggesting that the Northern Powerhouse initiative to rebalance the UK economy and narrow the North-South divide, has gained traction. New figures published by the Department for Communities and Local Government showed that as many as 1, 220 roles were created in northern enterprise zones in the final three months of 2015 an 18 per cent leap compared to the previous quarter. Thirty major corporations chose to expand in the North over the period, spread throughout the region’s 14 enterprise zones. Northern Powerhouse minister Andrew Percy said that the statistics proved the initiative was working, and that growing businesses in the North were beginning to receive adequate support. the Northern Powerhouse is attracting some of the world’s leading businesses to locate here and offer skilled jobs, said Percy. there is a real appetite to invest and do business in the North, thanks in no small part to high quality local support on offer to new and growing companies. As a central part of the government’s Northern Powerhouse plan, the enterprise zone programme offers support and a range of incentives to growing firms. Companies that set up in one of the North’s 14 zones are promised a business rate discount worth as much as 275, 000 over five years, and generous tax relief on investments in plants and machinery. Despite promising employment statistics, recent research found that growth in taxable economic activity in key towns and cities in the North of England has been sluggish.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.