Out-Law News 1 min. read
16 Jul 2012, 5:01 pm
The LCCI said that the rejuvenated EZs announced in 2011 are less generous that those established in the 1980s. The incentives for businesses to move to the Zones are not as great as they have been; they are not equal across all sites.
The business rates relief on offer may not be enough of an incentive to persuade large companies to relocate to EZs, and time limits associated with them mean that property development may not be completed in time for companies to benefit, the LCCI report (40-Pages / 875KB PDF) said.
The report listed measures that it said are needed to ensure the success of EZs in the future.
A new body should be created that has specific responsibility for an area's regeneration. It would need to have sufficient resources and appropriate power, the report said.
"EZs should be embedded within a broader sub-regional planning framework to ensure existing businesses are not threatened," the report said. "The Government needs to work with local authorities on an individual level to ensure that each EZ meets local needs."
All EZs should be developed alongside the necessary infrastructure, which can be achieved through effective collaboration with all levels of Government, the report said."EZs have the potential to revolutionise an area, as we saw with Canary Wharf in the 1980s, but simply establishing an EZ is not enough," said Colin Stanbridge, chief executive of LCCI. "The Government needs to be bolder in what is it trying to achieve otherwise any positive effects of EZ incentives will only be temporary."
"We need to see more flexibility in the system as well as the correct infrastructure and networks put in place to ensure that these areas are transformed into the attractive business locations they have the potential to be," said Stanbridge.
The report was completed by LCCI following a consultation with 21 experts from around the country. All the experts had been involved in the implementation of EZs and economic development, the report said.
