The Humber LEP welcomes the news in the Chancellor’s Budget that incentives on its Enterprise Zones will be extended for a further three years.
Originally enhanced capital allowances which are available on four of our enterprise zone sites – Green Port Hull, Queen Elizabeth Dock, Paull and Able Marine Energy Park – allowed businesses to deduct the costs of qualifying plant and machinery to a maximum of £100m to offset against corporation tax if the investment is made before April 2017. The incentive, which could be worth up to £10m per company, will now be available until April 2020.
Discounted business rates on the LEP’s 12 other Enterprise Zone sites will also be extended by 3 years, meaning that they will now be open to companies investing until 31 March 2018. The business rates incentive lasts for five years per company and could be worth up to €400,000, depending on the size of its business rates bill.
The Humber LEP recently met with HM Treasury officials to make the case for the Enterprise Zone incentives to remain in place as the renewable energy sector around the Humber grows, increasing the area’s attractiveness for investment from new and existing companies. The Enterprise Zones are part of a wider package of support available from the LEP and local authorities, which includes money from the Government’s Regional Growth Fund.
Local Growth Minister Kris Hopkins said:
“Today’s announcement means Humber will continue to be an attractive location for businesses to locate and invest, and will help them achieve their ambition to become the centre of the global offshore wind industry.
“This is part of our long term economic plan to back businesses right across the country, and it will create more jobs for local people.”
Lord Haskins, Chair of the Humber LEP, said:
“We are pleased that the Enhanced Capital Allowances and discounted business rates have been extended as it means more businesses wishing to invest in the Humber will get the chance to reap the benefits.
“Keeping these incentives in place is an important signal of the Government’s continued confidence in the Humber to deliver, and recognition of the significant potential we have to attract businesses here – particularly in the energy sector.
“Enterprise Zones are a key part of the support we have on offer for new and expanding businesses in the Humber, which together with our land and location helps us to compete with locations abroad.”
Our Enterprise Zones are in different positions. Some already have businesses on and others are at various stages of being developed.
At 484 hectares, equivalent to 780 football pitches, the Humber has the largest Enterprise Zone in the country. It is the UK’s largest development site next to a deep water port and has huge potential for the new offshore renewables industry. The Zone’s ambition is to be a world class renewable energy hub, focused around large wind turbine manufacturers and their supply chain.