Supporting economic growth by offering space for businesses from startup to scaleup
The first round of Enterprise Zones was launched in April 2012 to support economic growth by providing tax breaks and a range of interventions to help businesses start-up, grow and expand. Following this success, a second round of sites went live in April 2016.
Collectively, the North East Enterprise Zone is made up of 21 sites. You can find out more about each of the sites on the Invest North East England website.
The North East sites have been strategically selected to drive growth by building on local strengths, making the most of our natural and physical environment, skills and existing business base, as well as the innovation ecosystem.
The sites benefit from agreements that enable up-front investment and speedy development of facilities, as well as simplified planning processes through things like Local Development Orders.
What are the benefits for businesses?
Each site offers one of the following two benefits:
- Business rate discount – businesses can claim up to 100% discount against business rates that are worth up to £275,000. This can be claimed over a five year period through occupying premises on an Enterprise Zone site. This is the equivalent of £55,000 per year but does not need to be taken as an even annual split. To take advantage of this benefit, a business must be located on the site by the end of March 2018 for Round 1 sites and by the end of March 2021 for Round 2 sites
- 100% enhanced capital allowances – this tax relief is issued to businesses making large investments in plant and machinery. Businesses wanting to take advantage of the enhanced capital allowance must be located on site and make the claim by the end of March 2020 for Zone 1 sites and by the end of March 2025 for Zone 2 sites