Professional services firm Deloitte has attacked the government’s rollout of Enterprise Zones across the UK, saying it is ‘difficult to imagine’ that the initiative will meet current ‘economic and job creation goals’.
Professional services firm Deloitte has attacked the government’s rollout of Enterprise Zones across the UK, saying it is ‘difficult to imagine’ that the initiative will meet current ‘economic and job creation goals’.
The government yesterday announced 11 new zones that have been launched in order to drive growth and innovation among early-stage businesses. Among the new sites to have gained the status include a former airfield at Alconbury, near Huntingdon in Cambridgeshire, and at Enterprise West Essex in Harlow.
As part of the 2011 Budget in March, Chancellor George Osborne announced that the launch of 21 zones to offer simplified planning rules, super-fast broadband and tax breaks for businesses. The zones will be established in local enterprise partnerships already in operation across England.
Business Secretary Vince Cable says new enterprise zone sites announced yesterday will boost local growth and create more than 30,000 new jobs by 2015.
He says, ‘Across England, these zones will generate new jobs, investment in areas that can benefit, and develop high-tech products that will secure long-term sustainable prosperity.’
But Phillip Holt, Deloitte partner in charge of economic development, has questioned how effective the scheme will be in growing the sluggish British economy. The firm agrees the principles of the scheme are worthwhile, although it agrees the current proposals need to be ‘enhanced’ in order for regional growth to be realised.
He says, ‘Whilst investment in Enterprise Zones is welcome, it’s difficult to imagine this will meet the economic and job creation goals the government are seeking within the next four years. Detail around some of the zones is patchy and their effects may only be seen in the longer term.
‘What is more worrying is the lack of co-ordination around regional economic growth. The Regional Growth Fund, the continuance of structural funds and new Enterprise Zones are welcome, but does the sum of these enhance what was on offer under Regional Development Agencies?
“Local Enterprise Partnerships have a tough challenge ahead and the lessons from government intervention in the regions over the last 25 years suggest the package on offer at present needs to be substantially enhanced if regional economies are to grow in line with central and local government ambitions.’
The second wave of Enterprise Zones will be located in:
Humber Estuary Renewable Energy Super Cluster
Daresbury Science Campus in Warrington
Newquay AeroHub in Cornwall
The Solent Enterprise Zone at Daedalus Airfield in Gosport
MIRA Technology Park in Hinckley Leicestershire
Rotherwas Enterprise Zone in Hereford
Discovery Park in Sandwich, Kent and Enterprise West Essex in Harlow
Science Vale UK in Oxfordshire
Northampton Waterside
Alconbury Airfield, near Huntingdon in Cambridgeshire
Great Yarmouth in Norfolk, and Lowestoft in Suffolk
