Local enterprise partnerships (LEP) located in the home counties and the South East have eagerly embraced bidding for enterprise zone status, The MJ can reveal.
Last week, the chancellor, George Osborne, announced the first set of 10 enterprise zones, focusing on growth in the metropolitan regions of the northern cities, such as Liverpool and Tyneside, and the Midlands, such as Derby and Birmingham.
A bidding process will decide the remaining 11 enterprise zones. LEPs have been tasked with leading the process, as it has been announced the partnerships are an essential prerequisite to receiving enterprise zone status.
It is understood coast to capital, Greater Cambridgeshire Greater Peterborough, and Kent, Greater Essex and East Sussex LEPs are currently in detailed discussions over plans to develop bidding proposals for enterprise zone status. Other LEPs in the surrounding area also said they were considering bids.
But when contacted, northern LEPs yet to receive enterprise zones were more reticent about bidding.
Chair of the Greater Cambridgeshire Greater Peterborough LEP, Neville Reyner, said: ‘Enterprise zones will mean we can retain more of the dividends from growth within our LEP area, and so tackle those barriers which currently prevent our businesses from achieving their full potential.’
A source close to another southern bid told The MJ it was ‘the first time in a generation’ the area could see potential for large-scale business growth, and was ‘very excited’ about the opportunity.
Alexandra Jones, chief executive of policy institute Centre for Cities, said enterprise zones had given LEPs ‘real power’, especially as a vehicle for tax increment financing (TIF).
‘This shouldn’t be about a North-South divide.
‘Any LEP now has the potential to generate new business rates and growth through enterprise zones.
‘One of the best things about enterprise zones is that it fast-tracks tax increment financing – and we see this as the most positive element of the entire policy.
‘Areas which currently don’t have LEPs should seriously consider bidding for one.’
