19 Mar Royal Docks Government press release on Enterprise Zone
BUDGET BOOST FOR LONDON
ROYAL DOCKS ENTERPRISE ZONE
Businesses locating to the London Royal Docks Enterprise Zone will benefit from tax incentives for a further three years, under measures announced by the Chancellor in today’s Budget.
This means that businesses moving to the London Royal Docks Enterprise Zone will benefit from business rate discounts for five years, with the offer extending until March 2018.
In addition, on sites where enhanced capital allowances are available, businesses now have until March 2020 to make a qualifying investment, and can then write off up to £100m against corporation tax.
This is part of the Government’s long-term plan to rebalance the economy, and will help London Royal Docks Enterprise Zone achieve its potential as a key driver of the local economy.
Local Growth Minister Kris Hopkins said:
“London’s Royal Dock Enterprise Zone has massive development potential and has already set its sights on becoming the Capital’s next business district.
“Today’s announcement means the Royal Docks will remain an attractive location for businesses to locate and invest, creating more jobs for hardworking people and helping to reinforce how the area is a thriving centre of business, tourism and opportunity for local people.
London Royal Docks Enterprise Zone will be the capital’s next business district, creating a centre for global trade, with thousands of jobs and new homes. Chinese investor ABP announced a £1 billion deal to transform Royal Albert Dock into the capital’s next business district, providing 20,000 jobs over 25 years. The ambition is to creating a state-of-the-art business park aimed initially at Chinese and Asian business.
Long term programme to drive growth
Enterprise Zones are at the centre of the Government’s plan to grow the economy in a balanced way – across all industries, creating jobs and getting people into employment.
Since they opened for business in April 2012 Enterprise Zones have laid firm foundations for success, attracting international companies, building centres of excellence in key industries such as automotive, pharmaceuticals and renewable energy that will ensure that Britain continues to be competitive and successful on a global stage.
This is a 25 year programme to deliver local growth and jobs through Enterprise Zones. In their first 18 months, Enterprise Zones have attracted over 250 businesses, created over 7,000 jobs and secured £1.1 billion of private sector investment.
The Government is investing £330m in infrastructure to support Enterprise Zones to realise their potential as the engine rooms of local economies.
Local areas will benefit from millions of pounds of taxes generated by the businesses in their Enterprise Zone over the next 25 years. The money, generated through the 100% business rate retention scheme, can be reinvested in local businesses, jobs and skills and will provide Local Enterprise Partnerships with a guaranteed funding stream.
As part of the Budget 2014 the Chancellor announced that the Government will extend the deadline by which businesses need to have located in an Enterprise Zone in order to claim business rates discounts by three years until 31 March 2018. It will also extend the period in which enhanced capital allowances are available in Enterprise Zones by three years until 31 March 2020.