The Leeds city region has done well out of the government’s growth strategy. So far it has formed one of the country’s largest local enterprise partnerships, won funding for projects from the Regional Growth Fund and arguably secured a vital piece of the growth jigsaw: an Enterprise Zone.
It is hoped that the zone will kick-start large-scale regeneration, and much rests on Leeds City Region Local Enterprise Partnership making the right decision on its location.
Leeds is among 21 Enterprise Zones designated by the government, including one in neighbouring Sheffield. The zones are concentrated in areas that have either been traditionally dependent on the public sector or have suffered from economic stagnation.
Crucially, they come with an attractive menu of incentives, including five-year business rate discounts, streamlined planning and broadband.
With private and now public investment largely drying up, the zones are undoubtedly an important vehicle for wealth creation and growth.
The role of Leeds City Region LEP, with its 11 member authorities, is not only to find consensus on the location of the zone but to ensure that it slots in with its ambitious growth plans for a £7bn boost to the region’s GVA within 10 years.
Choosing an area for Enterprise Zone status is no easy task as there are several worthy contenders.
Between April and May, the LEP initiated a month-long investigative process to ensure that all its member councils looked at locations and potential sites in their areas. These were then presented at the LEP’s second board meeting last week with a view to deciding where the zone would be.
Latest incarnation
A spokesman says the process has been “very grown-up”, with the board keen to get the zone up and running. And in this latest incarnation of Enterprise Zones, speed is certainly vital, with the government looking for “oven-ready sites”, quick wins and rapid progress.
The potential sites have now been whittled down to four: Aire Valley, Bradford city centre, Selby and the Wakefield M62 corridor (see boxes below and p79).
A private sector-led panel is now weighing up the options, particularly the potential economic “displacement” that any zone may have on other areas in the region.
The panel will present its findings to the LEP board next month. A final site is expected to be submitted to the government by July.
John Dunshea, director of planning at BNP Paribas Real Estate, says the Leeds City Region LEP should be looking at creating the kind of “virtual circle” seen in places such as Cambridge, where clusters of high-tech industries end up attracting more like-minded businesses and creating sustainable growth.
He warns against the zone becoming too prescriptive and preventing existing regional businesses from moving into them for fear of “boundary hopping” – taking the tax breaks and moving on after five years.
But it is not all bad news for those sites not on the shortlist. At the LEP’s board meeting last week, it was also agreed that proceeds from the EZ will be reinvested across the city region, and local councils have been asked to bring forward priorities for that investment.
Aire Valley
Facts:
• 3,200 acres of greenfield, brownfield and waterfront land
• Potential for 7,000 jobs
• 7,000 homes
The site has long been the subject of regeneration ambitions. A £12m single regeneration budget scheme, launched in 2001-02 to help create jobs and support businesses in the area, folded in 2008. And in 2009, an M1 link road was completed just as the property bubble burst. These two factors have stalled development in the Aire Valley, although there has been some progress with: Crosby Group’s 15-acre Clarence Dock; Goodman Group’s 53-acre Leeds Valley Park; Templegate Developments’ 178-acre Skelton Gate business park; and Muse Developments/Lord Halifax Estate’s 121-acre Logic Leeds schemes.
What the industry says:
“The fact that the LEP board has agreed that monies generated by the Enterprise Zone will be reinvested across the city region makes Aire Valley the frontrunner. Its sheer scale and advanced proposals provide the greatest scope for the financial benefits to be reinvested in the shortest timeframe.”
Tim Waring, Indigo Planning
“The shortlisting of the Aire Valley as a potential Enterprise Zone will not come as a surprise to many in light of the investment it has already received – for example, the East Leeds Link Road. EZ status would also bring forward previously held aspirations for a tax increment finance district there. The Leeds City Region LEP may be hoping that EZ status will help deliver on the bold forecast of 27,000 jobs.
Richard Serra, Savills Leeds
Selby
Facts:
• 198-acre site in Selby town
• Mix of brownfield and greenfield
• Manufacturing businesses have been based on the brownfield part of the site
What the industry says:
“Selby has a good infrastructure and solid transport links, but is mainly considered a commuter town. Being labelled an Enterprise Zone would be a huge help in attracting tenants to some of its many empty commercial properties and warehouses.”
Deborah Powell, Simpson Millar
Wakefield M62 corridor
A number of sites have been identified along the M62 corridor as areas of “genuine economic opportunity”. Initial research indicates a total of 198.2 acres of employment land either allocated in the unitary development plan or with full or outline permission at junctions 31 and 32. The sites could accommodate around 4,000 jobs in the industrial and warehouse sector, but more if a proportion of land was given over to office development:
• Normanton Industrial Estate extension (M62 j31) – around 123 acres allocated for industrial development which is being marketed by its private sector owners. Described by council as having strong prospects for development within two to three years.
• Europort/Pioneer Site ( M62 j31) – number of small plots (circa 12.3 acres) immediately available
• Glasshoughton ( M62 j32) – number of small plots available. Possible development of sports stadium. Reasonable prospect of further development over next 3-5 years.
What the industry says:
“Of the four prospective sites listed, Wakefield M62 and Selby appear to have the best chance of being within an assisted area, and therefore have better potential to offer the widest range of incentives. There is an argument, however, for distributing the 370 acres allowed over more than one site – possibly all four sites – which could appeal to different market sectors and thus succeed in attracting more investment and jobs to the region overall. However, that could be seen as a political fudge to give each of the four local authorities a piece of the cake.”
Stephen Miles, DTZ
Bradford
Bradford city council remains tight-lipped about the details it is proposing for the potential Enterprise Zone. The city has had some success in recent years – for example, Provident Financial moved into a brand-new headquarters building in the city centre. However, there are also some glaring regeneration failures. The city’s ambition for retail space remains a hole in the ground, despite the project being conceived more than 13 years ago.
David Green, Bradford council’s executive member for regeneration and economy, said in a statement: “We are pleased that the city centre Enterprise Zone has been shortlisted for further consideration by the Leeds city region board. There are a number of active inward investment enquiries that could become firm proposals because of the incentives offered by the Enterprise Zone.
What the industry says:
“Bradford city centre is the least likely to benefit from being named an Enterprise Zone. Regeneration of this area must be led by the private sector, and EZ status will not enable it to achieve what needs to be done. The rest are all good contenders that could utilise it effectively.”
Roger Woolhouse, BNP PRE
“Bradford has historically suffered from a lack of investment, and is often viewed as the poor relation to its neighbour, Leeds. However, with the Westfield Bradford shopping centre back on the agenda, and the potential for a new Enterprise Zone, the city will attract thousands of jobs and stimulate much-needed growth in the area.”
Ian Webster, CB Richard Ellis
