Company Tax and Economic Growth

vivatifosi

There are 24 EZs already in the UK. Here's a couple of questions...

Are they in the most appropriate places to reflect need?
Are they in the most appropriate places to attract jobs (may be different from above)?
Do they offer the right incentives?

List of EZs:
http://enterprisezones.communities.gov.uk/enterprise-zone-finder/
What's on offer in terms of incentives:
http://enterprisezones.communities.gov.uk/about-enterprise-zones/

vivatifosi

Generali wrote: »

Sending the Civil Service Oop North just makes things worse. They massively outpay local employers and so take the cream that hasn't moved away already. Private enterprise that could actually turn the area around can't afford to compete.

Paying less needs to be part of the project if they move. There's no point in relocating jobs on the same money as you incur move costs without saving on your biggest outlay.

Working in local government, we've already experienced the move away from final salary pension schemes, less beneficial T&Cs and frozen/reduced salaries, this has to happen to the civil service too if the government is serious about moving. Otherwise the cost saving won't be substantial enough and as you say, it upsets the local job market.

ajsexton

As I said this was a brief discussion without knowing too much about current incentives, I am learning a lot here, Thanks to all.

Will look further into comments made an respond in time. Some I can see Ill probably disagree with, others Ill agree with others fill some sort of grey area currently

BillJones

vivatifosi wrote: »

There's a history of setting up enterprise zones in this country to attract investment into an area and incentify the creation of new jobs. Ironically, the London Docklands was one of these in the 1980s and early 1990s.

I'm not really sure what's "ironic" about that. It was deprived, it was granted special status, the benefits offered worked, and the area took off.

I've lived there since before it was a success, and still live there now, and think that it's a brilliant example of an enterprise zone doing what it was supposed to.

princeofpounds

Sending the Civil Service Oop North just makes things worse. They massively outpay local employers and so take the cream that hasn't moved away already. Private enterprise that could actually turn the area around can't afford to compete.

Moving civil service would make sense if they were doing it to benefit from the lower cost labour pool (although it would be a little bit higher cost than if the jobs weren't there, so everyone benefits).

Just moving it to shift the money to the area is indeed crowding out.

vivatifosi

BillJones wrote: »

I'm not really sure what's "ironic" about that. It was deprived, it was granted special status, the benefits offered worked, and the area took off.

I've lived there since before it was a success, and still live there now, and think that it's a brilliant example of an enterprise zone doing what it was supposed to.

What's ironic is that nothing else has come close to its success. I visited it often before and after development of the Canary and agree that it really needed doing. It's changed by a degree that is unimaginable. The question is whether it will or can ever be replicated.

The strange thing is I can also remember people out with placards in the mid-1980s saying that they didn't want it and lots of talk of destroying the old ways of life, access to the river, etc..

Generali

vivatifosi wrote: »

What's ironic is that nothing else has come close to its success. I visited it often before and after development of the Canary and agree that it really needed doing. It's changed by a degree that is unimaginable. The question is whether it will or can ever be replicated.

The strange thing is I can also remember people out with placards in the mid-1980s saying that they didn't want it and lots of talk of destroying the old ways of life, access to the river, etc..

So what we should do is set up another couple of similar zones. One on the Kent coast would be a good idea. There are good communications to France and London, plenty of people and lots of poverty.

Bantex_2

Generali wrote: »

So what we should do is set up another couple of similar zones. One on the Kent coast would be a good idea. There are good communications to France and London, plenty of people and lots of poverty.

Bit different, docklands was already withing touching distance of The City anyway.

Generali

Bantex wrote: »

Bit different, docklands was already withing touching distance of The City anyway.

Always seeing the negative.

vivatifosi

In terms of Kent, Discovery Park is a Kent EZ, it's based on the former Pfizer site, which certainly brings it into the current news. The local government is trying (as at March 2014) to get an extension to the EZ to bring in Manston airport, which may also be a good idea:

http://thanet.gov.uk/the-thanet-magazine/press-releases/2014/march/council-suggests-enterprise-zone-extension-to-cover-airport/