Enterprise Zones have featured in the United Kingdom’s urban regeneration policies since the early 1980’s. Many of the 38 zones have reached the end of their life-cycle and the programme is due to end in 2006. The zones provide a range of benefits to the developers, investors and occupiers of industrial and commercial properties.This study by the Office of the Deputy Prime Minister shows that Enterprise Zones have succeeded in stimulating new enterprise and in encouraging the growth of existing enterprises. One of the main conclusions is that in order to have any real impact on the regeneration of deprived areas through attracting private investment, the benefits offered to investors have to be significant. Tax based incentives are essential if developers are to be encouraged to construct buildings in areas of perceived low demand and if investors are to be encouraged to invest. The general view of people in the areas was that without the zone approach the economic and social conditions would have been far worse.
Some doubts were expressed about the long-term future of the employment that was created, such as call centers. Others argue that if employment is relatively short-lived, it will have provided several years employment for a large number of people.
Published by the Office of the Deputy Prime Minister and available at: http://www.odpm.gov.uk/stellent/groups/odpm_urbanpolicy/documents/pdf/o dpm_urbpol_pdf_026797.pdf