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BAE closure sites to become enterprise zones, Government announces


Enterprise groups in the locations where three BAE Systems plants announced thousands of job losses have been invited to develop proposals to become enterprise zones, the Chancellor has announced.

The Government says is will work closely with Local Enterprise Partnerships in Lancashire and Hull and Humber to develop "strong and viable" proposals for the zones.

The defence company announced 3,000 potential redundancies at its sites in Warton and Samlesbury, Lancashire and Brough, East Yorkshire, last week.

The Government has created 21 enterprise zones in England to date as a means of boosting economic growth. They benefit from simplified planning restrictions, business rates relief and Government-supported superfast broadband.

The devolved administrations have been encouraged to consider similar policies. Welsh Business Minister Edwina Hart announced the first five sites to be given enterprise zone status in Wales earlier this month.

Businesses which move into the new zones will receive a 100% business rate discount worth up to £275,000 over a five year period.

In addition, local authorities will be allowed to keep increased business rates generated by the new zones for at least 25 years. Tax Increment Financing (TIF) arrangements will allow authorities to borrow against these funds for local development costs.

It is hoped the two new enterprise zones will be in operation by April 2012.

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