WIREDGOV

NLGN says Government must avoid creating “gated business community” in declaring deprived areas ‘Enterprise Zones’

In response to a report in the media that the Government will this week declare the UK’s twenty most deprived areas ‘Enterprise Zones’, Senior Researcher Tom Symons at Localism Think Tank the New Local Government Network (NLGN) said:

“It is encouraging to see the Treasury recognising the importance of local growth incentives but it begs a serious question about what this means for the government’s primary engine for local economic growth – LEPs.”

“To avoid a race to the bottom on business rates or the displacement of existing growth, the zones will need to fit within the new economic geography that LEPs represent rather than sit separately as a sort of gated business community. Building the zones into LEP arrangements would also head off tricky turf issues, whether on local accountability or relations with established local companies.”

”In the end, the win-win would be enterprise zones focused on attracting new investment, but with strategic support on infrastructure – such as transport and housing – to plan for longer term growth.”

Notes to Editors:

1. The New Local Government Network (NLGN) has been at the forefront of the localism agenda since 1996. Under its new Director Simon Parker, NLGN will continue to lead the drive for decentralisation, stronger communities and more innovative councils. For further details visit: www.nlgn.org.uk.

2. ‘Budget 2011: UK’s 20 most deprived areas to become Enterprise Zones’, was published by Emma Wall in the Daily Telegraph today. The report can be found here: http://tinyurl.com/686y7gw.