THE Government’s announcement that they will create at least 10 enterprise zones to act as a catalyst for business growth was largely met with pessimistic indifference across the city region.
The much-hyped policy announcement, officially launched by Chancellor George Osborne at the weekend, said at least £100m will be invested in the scheme, which aims to target poorer areas in the north of England and the Midlands.
Mr Osborne said the new enterprise zones would be centres for new businesses where “taxes will be even lower” and restrictions on growth removed.
Economist Peter Stoney, director of the Liverpool Research Group in Macroeconomics, is far from convinced of its merits. Referring back to a previous attempt by a Conservative government to introduce enterprise zones, he said: “I don’t really think they are a good idea – not on the basis of what happened 30 years ago,” he said.
“Then, the net job gain was only very small. There was a transfer of businesses into the enterprise zone which were previously outside it.
“Also what little effect there was was short-term. It didn’t create permanent employment in the volume that was intended.”
Merseyside’s councils said they were still in the dark last night.
Mark Dickens, head of regeneration at St Helens Council, said: “We would need to see more detail in terms of enterprise zones. It is something that has been in the background for a while, but we have heard nothing specific.”
A Liverpool City Council spokesman echoed his comments, saying: “We haven’t been approached yet. We would consider it on its merits, but we would need more detail.”
Wirral Council also has no knowledge of plans to zone any part of its land, but council leader Cllr Jeff Green said: “Enterprise zones are part of a wider package to help rebalance our economy and create more jobs.
“Any policy that assists Wirral is welcome, but we are also introducing our own measures to help small and medium-sized employers.”
The exact locations are expected to be announced on March 23, when the Budget is delivered.
