The importance of Enterprise Zones
21 Aug 2017
The success of Logic Leeds, our pioneering 110-acre development by Junction 45 of the M1, is due to a number of factors, but the fact that it is part of the Leeds City Region Enterprise Zone has been pivotal in attracting quality occupiers.
The decision by such major and well-respected players in the British retail industry as John Lewis and Amazon to come to Logic Leeds is a ringing endorsement of our development and has put it firmly on the map. So too is Leeds City Council’s recent acquisition of three speculative industrial units, totalling 100,000 sq ft.
Our flagship manufacturing and distribution development benefits from a number of incentives for occupiers because it is part of the Enterprise Zone. These incentives, plus Logic Leeds’s superb location and quality buildings, just half-a-mile from Junction 45 of the M1, makes this development a very attractive proposition indeed.
Established in 2012 to stimulate the economy as it emerged from recession, Enterprise Zones are designated areas across England which provide tax breaks and benefit from Government support. They are great places to do business especially for both new and expanding firms. Since starting in April 2012 they have laid down the foundations for success for nearly 1,000 businesses, attracting over £2.4 billion of private sector investment, building world class business facilities and transport links and unlocking development sites for speculative building.
These are the key benefits that Enterprise Zones offer businesses:
- Up to 100% business rate discount worth up to £275,000 per business over a 5-year period
- Simplified local authority planning, for example, through Local Development Orders that grant swift planning permission for certain developments or changing how existing buildings are used) within specified areas
- Government support to ensure that superfast broadband is rolled out throughout the zone, and, if necessary, public funding
- 100% enhanced capital allowances (tax relief) to businesses making large investments in plant and machinery on 8 Zones in Assisted Areas
Logic benefits form all of the above.
Enterprise Zones are establishing themselves as the driving force of local economies as they unlock key development sites, consolidate infrastructure, attract business and create jobs.
All business rates revenue generated by the Enterprise Zone is kept by the relevant Local Enterprise Partnership and Local Authorities in the areas for 25 years to reinvest in local economic growth. For the Local Enterprise Partnerships with Enterprise Zones, this represents a significant commitment to long-term economic growth.
In addition, the Government is committed to working actively with Enterprise Zones to help unlock any barriers to delivery, such as Department for Transport support on transport infrastructure, Defra support on addressing environmental issues and UKTI advice on marketing zones to international investors.
These incentives make a real difference. Logic Leeds has always been viable, but we needed to encourage occupiers to come here. With our fantastic facilities and superb location, coupled with these incentives, our development looks a very attractive option. Amazon and John Lewis are proof of this.