The UK government has this week announced the locations of the remaining 11 Enterprise Zones, following on from the first wave announced in Chancellor George Osborne's March budget.

The first round of Enterprise Zones, announced earlier this year, will be based within the following local enterprise partnership (LEP) areas: Birmingham and Solihull, Sheffield City Region, Leeds City Region, Liverpool City Region, London, Greater Manchester, West of England, the Black Country, Derby and Nottingham, Tees Valley and the North East.

Although bids were initially invited for just ten more zones, the government announced that it had increased this to eleven, due to "the strength of the applications from Local Enterprise Partnerships".

The new Enterprise Zones announced on Wednesday are to be located in: Cambridgeshire (Alconbury Airfield), Cornwall (Newquay Airport), Gosport (Daedalus Airfield), Great Yarmouth in Norfolk, Hereford, Harlow in West Essex, Hinckley in Leicestershire, the Humber Estuary, Lowestoft in Suffolk, Oxfordshire, Northampton, Sandwich in Kent, and Warrington (Daresbury Science Campus).

Alongside the new Zones, the Government will make good on an earlier pledge to offer enhanced capital allowances available for plant and machinery investment to a limited number of Enterprise Zones in Assisted Areas, including the Tees Valley and North East. From 2012, companies setting up in these areas will be eligible to claim enhanced first year allowances for plant and machinery, giving them an upfront cash flow benefit.

Also available to businesses locating in Enterprise Zones are:

• 100% business rate discount worth up to GBP275,000 over a five year period, for businesses that move into a zone during the current Parliament;
• Simplified planning procedures
• Superfast broadband.

Additionally, all business rates growth within the zone for a period of at least 25 years will be retained and shared by the local authorities in the LEP area to support their economic priorities.

Commenting on the expansion of the scheme, Prime Minister, David Cameron observed that:

“We are determined to do everything we can to make Britain the best place in the world to start and grow a business. Enterprise Zones are a major step towards delivering this; cutting business taxes, easing planning restrictions and giving business the tools they need to invest and expand.

Chancellor, George Osborne, added:

“It is vital that we create balanced economic growth across the country. It is time for us to help every part of the country to grow and realise its potential. Enterprise Zones are a critical part of our Plan for Growth and will support economic development and create over 30,000 new jobs by 2015. The zones will benefit from over GBP150 million in tax breaks over 4 years, new superfast broadband, lower levels of planning control and the potential to use enhanced capital allowances.”

Business Secretary, Vince Cable, observed in conclusion that:

"Enterprise Zones are creating an environment for businesses to grow in places with the most potential. Those the government is announcing today, on top of those already approved, show the range of ambitious plans in place across the country."

He continued: "Local Enterprise Partnerships have worked closely with businesses in their communities to put forward a range of high-quality proposals. The successful bids they will now take forward are going to help inject new growth into their economies."

"Across England, these Zones will generate new jobs, investment in areas that can benefit, and develop high-tech products that will secure long-term sustainable prosperity."

However, the initial announcement of the scheme was met with a mixed response from the small business community, which expressed disappointment at the relative lack of 'up-front' support.

Concerns were also expressed that the scheme was too similar to a similar one put in place during the previous Conservative administration, which was criticised as being costly and not effective in creating growth in the long-term, with investment in the area in which the zone is located tending to fall away after a few years.

The government stressed at the time, however, that the plan is not just being recycled from the Thatcher era, and that the new enterprise zones would be more nuanced, with a focus on the specific needs of the area.