Thursday, October 22, 2015

Enterprise Zones provide a boost to the UK construction sector

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.

No comments: