Enterprise Zones 2011

The 2011 Budget announced that the Government will establish 21 new Enterprise Zones in local enterprise partnership (LEP) areas in England.  LEPs, which replace regional development agencies, are bodies set up by local authorities to promote local economic development.  Each LEP comprises representatives from the local authority and businesses.

The 21 proposed new enterprise zones will benefit from simplified planning rules, super-fast broadband, and tax breaks for businesses, which are all designed to act as an incentive for growth.

Enterprise Zones are particularly important from a planning perspective.  Their status is conditional upon their founders putting in place a simplified approach to planning which should cover at least the area zoned for business rate discounts.

It is likely that local development orders will be the mechanism by which local authorities reduce planning control within the zones.  The orders are currently used by local authorities to encourage growth or regeneration, and work by granting planning permission outright or with conditions.  They may apply to a specific type of development, such as allowing changes of use in business premises, or permit any development within a specified area.

The process for establishing a Local Development Order can be straightforward.  In simple cases it may take as little as two months, and involves drafting the document, public consultation, notifying the Secretary of State and adoption.

It is hoped that the reduced planning control within the zones will encourage development and promote economic growth, because the orders will provide businesses with certainty that a proposed development can take place without the need to incur the costs and delays involved in submitting a planning application.

The Budget announced that the first 11 LEPs to benefit from the zones will be Liverpool City Region; the Black Country; Nottingham, Nottinghamshire Derby and Derbyshire; Western England (including Bristol); London; Greater Manchester; Leeds City Region; Sheffield City Region; North Eastern; Greater Birmingham and Solihull; and Tees Valley.  It has been confirmed that the location of the first four zones will be the Boots campus in Nottingham; Liverpool Waters; Manchester Airport; and the London Borough of Newham's Royal Docks.  The Budget also announced that there will be a competition for a further 10 Enterprise Zones in the remaining LEP areas.

Ashfords LLP is regulated by the Solicitors Regulation Authority.  The information in this note is intended to be general information about English law only and not comprehensive.  It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.