1980s-style Enterprise Zones alone will not create much-needed jobs in the North

Commenting on Chancellor George Osborne's budget speech today ippr north Director Ed Cox said:

'It is about time that the government turned its attention to economic growth but there is little to suggest that a failed policy from the 1980s will work this time round.

'Six of the 10 Enterprise Zones announced are located in the North. This is a welcome recognition of the need to boost growth in the North, but it is unlikely that Enterprise Zones will result in the new jobs that the North really needs. Enterprise Zones have been tried in the past and found wanting - they're more successful at encouraging businesses from neighbouring areas to relocate than they are at creating new jobs.

'One positive is the announcement that Local Enterprise Partnerships (LEPs) will be able to keep any increase in business rates gained from the Enterprise Zones for 25 years. This will provide a much needed revenue stream to LEPs, which otherwise have few resources other than the ability to bid to the over subscribed Regional Growth Fund. Nonetheless this will not be sufficient to enable the investment in skills and infrastructure that are needed to drive growth.

'The Government has made it clear Enterprise Zones must focus on areas of growth, and not be "a remedy for dereliction". A key challenge for both government and Local Enterprise Partnerships will therefore be how to ensure Enterprise Zones are effectively linked to surrounding areas that are lagging, so that everyone can benefit from any economic growth that does occur.'

On rebalancing the economy Ed Cox said:

'The downward revision of the growth forecast announced today is clearly unhappy news for the UK as a whole, but it is particularly bad news for the North of England, where growth rates generally lag the UK rate. This budget has not done enough to change that.

'The emphasis on advanced manufacturing, life sciences, creative industries and green investment all present important opportunities for the North of England. But when we look at the actual capital investment that has been announced today the focus is still on the Greater South East, with only the Daresbury Campus and rail improvements in Manchester the Northern projects to get a mention.'

Notes to editors:

Of the Enterprise Zones announced today, the following eight out of 10 have tried Enterprise Zones before :

• Leeds city region (Wakefield)
• Sheffield city (Dearae Valley and Rotherham)
• Liverpool (Speke)
• Greater Manchester (Salford/Trafford)
• Tees Valley, (Middlesbrough and Hartlepool)
• North Eastern (Tyne Riverside, Gateshead and Sunderland)
• Derby and Derbyshire with Nottingham and Nottinghamshire (Ashfield, Bassetlaw, Mansfield and North East Derbyshire)

Contact:

Tamsin Crimmens, Media Officer - call 07800 742 262 or email t.crimmens@ippr.org