As reported in an article in Property Week, Osborne stated that the UK's cities need to compete internationally and "we need to supply them with the necessary infrastructure to do so".
Through the Birmingham enterprise zone the Treasury will lend the city council up to £1.2bn over a 25 year period to fund projects creating approximately 40,000 jobs.
The zone will also allow developers to apply for bridging finance and receive relaxed planning restrictions with the aim to position Birmingham as an alternative to London for international investors. 26 sites have been earmarked across the city centre for regeneration. The zone is supported by Andy Street, chief executive of John Lewis, and Lord Heseltine.
"We need the private sector to grow and make opportunities for new businesses," Osborne said. "Longer-term projects like High Speed 2 or shorter-term projects like the lengthening of the runway at Birmingham airport are all signs of the Government's commitment to physical infrastructure and to construction."
“Not only is the zone crucial to the delivery of the job and economic impact targets set by the Local Enterprise Partnership, but it will also be used to fund projects right across the area," said Street of John Lewis.
