As David Cameron and Nick Clegg descended on the Boots factory in Nottingham last week, the race was on to get the first wave of the government’s new-look Enterprise Zones off the ground.
The prime minister and his deputy were there to throw their weight behind plans announced by chancellor George Osborne in the Budget for an initial 11 EZs, all in areas that have already set up Local Enterprise Partnerships.
Where exactly all these first EZs will be within their regions is not yet certain, however.
The Boots site in Nottingham has secured its spot on the list, as has Royal Docks in east London. But in many other regions, LEPs are now weighing up several worthy contenders before deciding which sites offer the best prospects for job creation.
There is much at stake for local landowners and developers: EZ status will bring with it tax breaks to attract business occupiers, simplified planning rules and funding for super-fast broadband. “We’re trying to make Britain the best place in the world to start a business and expand,” Cameron said.
One carrot dangling in front of the LEPs as they reach their decisions is the prospect of retaining all business-rate growth within their zone for at least 25 years.
Greater Manchester
Location 60 acres of land adjacent to Manchester airport will form the first element of mixed-use development Airport City. The EZ is expected to focus on this scheme.
Landowners Manchester Airport Group subsidiary MAG Developments owns two-thirds of the site. Remainder is held by the council and Goodman.
Why does it need EZ status? Passenger numbers are tipped to rise from around 20m pa to 50m pa by 2030, providing scope for development. MAG Developments managing director John Atkins says: “Enterprise Zones are about identifying sites capable of attracting international investment. This site has the potential to be an international destination and allows us to compete with similar schemes in the likes of Milan, Frankfurt and Amsterdam.”
How will EZ status make a difference? Atkins says: “EZ status will assist in a number of ways, including incentives and tax rates, but also the efforts of UK DTI in seeking to attract investors to it.”
Derby & Nottingham
Location Boots site in Lenton, Nottingham.
Landowner Alliance Boots
What is there already? Around 100 acres of land with potential for 2m sq ft of development. Includes Grade I-listed commercial buildings.
Why does it need EZ status? The site is in a strong location with single ownership but most feel the EZ status is a way of creating much-needed business space. Matt Smith of King Sturge says: “You need the basics to be in place for a site to have a sustainable future.”
Regeneration so far Boots has promoted the site but no development has taken place.
How will an EZ make a difference? It will give Boots the opportunity to “forge ahead” with its plans for a mixed commercial scheme, according to Alex Gourlay, chief executive of Alliance Boots’ health and beauty division.
Issues Sites such as Southside, Nottingham, including schemes by Peel and Wilson Bowden, may feel disadvantaged.
The Black Country
Location The partly developed 2.5m sq ft i54 business park at Wolverhampton is a favourite, while the regeneration of the whole of Wolverhampton town centre may also be a contender.
Landowners i54 was owned by recently defunct Advantage West Midlands RDA and is now the responsibility of the Homes & Communities Agency.
What is there already? Mainly brownfield land.
Why does it need EZ status? Walsall, Wolverhampton, West Bromwich and Brierley Hill have no coherent economic draw.
Regeneration so far i54 has already benefited from £17m of infrastructure investment. The single-route Midlands Metro made it to Wolverhampton, but a further planned line into the Black Country has never materialised.
How will an EZ status make a difference? Local property players believe an EZ will help to overcome negative perceptions about the area.
Issues The other West Midlands EZ is close by, which could mean the two end up competing.
Sheffield
Location Sheffield City Region LEP is considering several sites including the Dearne Valley and Sheffield city centre.
Landowners A wide mix including Peel Group at Robin Hood airport, tipped as a possible location.
What is there already? A mix of brownfield sites.
Why does Sheffield need EZ status? “The region has suffered like elsewhere from suddenly not having an RDA,” says James Newman, chairman of the LEP.
Regeneration so far Numerous plans have been implemented, with public grants to offset the decline of manufacturing.
How will an EZ make a difference? Sheffield believes an EZ will help attract large manufacturing occupiers.
Issues Only occupiers from outside the region will get the full range of benefits, to lessen the likelihood of local occupiers vacating other sites.
Bristol
Location West of England LEP is likely to decide within the next couple of months between Avonmouth on the Severn Estuary or Temple Quarter in the city centre.
What is there already? Avonmouth is the home of Avonmouth Port, several large chemical manufacturing works and occupiers including Warburtons and Tesco. Temple Quarter has land and Temple Meads station. Occupiers include Bruges Salmon, Deloitte and Grant Thornton.
Landowners In Avonmouth, the 640-acre Goodman and Severnside Development jv at Central Park is probably the largest. Other owners include St Modwen, with 212 acres at Access 18, and Gazeley, which owns the 134-acre G-Park.
Temple Quarter The soon-to-be-defunct SWRDA has land holdings around Temple Meads station. Private sector owners include Royal London, Carlisle Group, Salmon Harvester and UK & European.
Why does Bristol need an EZ? Avonmouth has developable land and could become a focus for hi-tech engineering. At Temple Quarter, at least 1m sq ft of new space could be accommodated.
How will EZ status make a difference? “If in-town is chosen, there will have to be careful consideration of the boundary so as not to alienate those who’ve already invested in the city centre,” says Tony Nicholas, head of Knight Frank’s Cardiff office.
Leeds city region
Possible locations Leeds LEP board meets on 17 April to discuss Aire Valley, York Central, Leeds-Bradford corridor and Bradford-Shipley Canal corridor. The 2,470-acre Aire Valley, 2 miles south of the city centre, is frontrunner.
Landowners Aire Valley has 988 acres of development land including 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 is there already? One-third of all land available for future industrial use in West Yorkshire. The area could provide up to 27,000 new jobs and thousands of homes.
Regeneration so far The East Leeds Link road was completed in 2009, linking the Aire Valley with J45 of the M1.
Why does it need EZ status? Jones Lang LaSalle’s Jeff Pearey blames market conditions: “The recession came two years too early.”
Greater London
Location The proposed EZ runs from Silvertown Way to Barking Creek, covering around 1,200 acres, plus more than 618 acres of brownfield sites for development.
Landowners The freehold to at least 309 acres of the brownfield land is owned by either the London Development Agency or Newham council. Other key stakeholders include Siemens, Tate & Lyle, Ballymore, Barratt, Quintain, Notting Hill Housing Association and Bouygues.
What is there already? Some 200 acres is water surrounded by brownfield land, housing and sewage treatment works.
Why does it need EZ status? Since the docks closed in 1981, the area has been blighted by large chunks of vacant brownfield land.
Regeneration so far The area has attracted some inward investment including City Airport, DLR, Royal Business Park, the University of East London and the Excel Centre. The 39,500 sq ft Siemens Pavilion is expected to be built by early 2012.
North East
Location North East LEP to decide from several sites including the north bank of the Tyne site near Wallsend and a site close to the Nissan plant and Turbine Business Park, off the A19 in Sunderland.
Landowners Numerous – they include Turbine Business Park owners Wilton and Clugston.
What is there already? Vacant sites and industrial buildings.
Why does it need EZ status? Unemployment and deprivation remain high. The EZ could spur the growth of the hi-tech and renewable technology sectors, alongside green automotive technology.
Regeneration so far The north bank of the Tyne is the subject of a regeneration framework drawn up by GVA. Infrastructure is in place at Turbine Business Park.
How will an EZ make a difference? Inward investment is needed. The 1.25m Cobalt Business Park in north Tyneside, a former EZ, attracted occupiers including Orange and Fujitsu.
Any issues? Agents are optimistic about widespread benefits. Knight Frank director Tim Evans says: “Historically, the EZs have been complementary to the city centre offer.”
Tees Valley
Location Tees Valley Unlimited LEP to decide. Possibilities include the Ironmasters site, Middlesborough; Hartlepool docks; and locations in Redcar, Darlington and Stockton.
Landowners A mix.
What is there already? A mix of cleared development sites and brownfield land.
Why does it need EZ status? The steel and chemical industries have declined, and Teesside has high deprivation in 16 out of 23 wards. Middlesborough mayor Ray Mallon says the EZ will combat £46m of public spending cuts.
Regeneration so far Darlington’s Central Park and Stockton’s North Shore are among recent schemes. But Middlesborough South MP Tom Blenkinsop claims the previous Riverside Park EZ was ineffective.
How will an EZ make a difference? “We need to diversify the economy to make it more resilient to economic shocks,” says Linda Edworthy of Tees Valley Unlimited. The aim is to capitalise on port activity and petrochemicals.
Issues Restrictions will be put in place to avoid displacement from other areas.
Birmingham & Solihull
Location To be decided by the Birmingham & Solihull LEP next week. Frontrunners are Eastside; the M42 Corridor; and the five key areas in Birmingham’s Big City plan: Eastside (again), as well as Westside, Snowhill, Southern Gateway and New Street station.
Landowners A large mix, but the major landowner is Birmingham city council.
Why does it need EZ status? The EZ could spur development in the city centre on the back of the proposed HS2 terminus at Eastside. Out of town on the M42 corridor, the EZ could become an international location for global occupiers.
Regeneration so far A re-masterplanning exercise is taking place at Eastside as part of the Big City plan.
How will an EZ make a difference? “This will shape development in our area for decades. We need to be hugely ambitious,” says Birmingham & Solihull LEP’s Mark Barrow.
Merseyside
Location Peel Waters, Peel Group’s twin 150-acre Liverpool Waters and 185-acre Wirral Waters sites are located on opposite banks on the river Mersey on 1.2 miles of Liverpool’s rundown docklands.
Landowner Peel owns Mersey Docks & Harbour Co, which owns Liverpool Docks and Birkenhead Docks.
Regeneration so far Final go-ahead was granted in December for 17m sq ft of development at Wirral Waters, comprising 13,521 homes, 645,000 sq ft of shops plus 4.5m sq ft of offices. Last October, Peel submitted the UK’s largest-ever planning application – for Liverpool Waters, including offices, retail, 9,000 homes and a cruise terminal.
Why does it need EZ status? Peel development manager Richard Mawdsley says: “Merseyside has lost a lot of its population in the last 50 years, so has an underutilised road and rail infrastructure.”
How will EZ status make a difference? “It means we can start earlier than we had planned and do more in the first few years of the 30-year development timeframe.”
The next round of EZ allocations
LEPs have until May to submit expressions of interest to business secretary Vince Cable as part of a second round of Enterprise Zones to be created this summer.
Zones will be allocated by June. Only regions with LEPs are eligible to apply, ruling out those without, such as Humberside and Devon.
Proposals mooted so far include bids for Wearmouth in Sunderland; the land soon to be vacated by Pfizer in East Kent; as well as bids for Cambridge, Croydon, Tottenham, Cumbria, Lancashire, Middlesbrough, Milton Keynes, Norwich, Stoke and Staffordshire.
