It is estimated that more than £400m is currently being
spent by LEPs on major projects across Enterprise Zones in the UK. This has led
to a major boost to the UK construction sector with work already carried out to
redevelop more than 100 hectares of land and deliver more than 5.4m sq. ft. of
new or refurbished floor space. Enterprise Zones are also bringing back
speculative development to the UK for the first time since the recession.
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 attracted over 430 companies, secured over £2.1bn of private sector
investment and created more than 15,500 jobs across the Country. The majority
of UK Enterprise Zones, which are hosted by Local Enterprise Partnerships
(LEPs), are located in England, though there are 7 in Wales and 4 in Scotland.
Commercial and industrial firms locating to Enterprise
Zones are eligible for incentives to set up or expand, such as business rate
discounts and Enhanced Capital Allowances for the purchase of machinery and
equipment. Enterprise Zones have also been eligible to apply for a number of
grants including the Local Infrastructure Fund to support enabling works in and
around Enterprise Zone sites and also accelerate large scale housing
developments and the Capital Grant Fund to support infrastructure projects. In
addition, Enterprise Zones will be subject to simplified local authority
planning.
There are proposals to extend a number of enterprise
zones in the UK, as well as to establish new Enterprise Zones, and in the 2015
Summer Budget, key measures affecting LEPs and Enterprise Zones with the
invitation to bid for a new round of Enterprise Zones were also announced. In
addition, the Government wants its 20 newly established Housing Zones to be
areas where the process of house-building on brownfield land can be accelerated
and simplified through locally led partnerships.
In December 2013, the
Treasury announced a £15m pilot scheme to create a number of University Enterprise
Zones (UEZs), designed to encourage clusters of high-tech firms to locate near
and engage with universities. In the Agri-food sector, 11 Food Enterprise Zones
were established in February 2015, dedicated to food and agriculture to help
food and farming companies grow and attract new businesses. In March this year,
the Government announced the creation of another 6 new Food Enterprise Zones.
The Advanced Manufacturing/Engineering sector is one of
the most significant within the UK Enterprise Zone market, with 19 LEPs having
earmarked large areas for future developments. Regional clustering is central
to the advanced manufacturing supply chain and a number of Enterprise Zones
have developed extensive supply chains. Key individual sectors are automotive,
aerospace, renewable energy and low carbon, life sciences and IT and consumer
electronics.
“Many recent and prospective
Advanced Manufacturing schemes have been within zones created by LEPs, with
most Local Enterprise Zones located on ‘brownfield’ sites in former industrial
areas” said Hayley Thornley, Research Manager at AMA
Research. “Construction projects within
the zones are typically commissioned by property development companies, usually
working in partnership with the relevant LEP and/or other land owners.”
The ‘Enterprise Zones – Construction and Development Opportunities Market
Report – UK 2015-2019 Analysis’ is published by AMA Research, a leading provider of
market research and consultancy services with over 25 years’ experience within
the construction and home improvement markets. The report is available now and
can be ordered online at www.amaresearch.co.uk or by calling 01242
235724.
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