Cluttons, International Property Consultants And Chartered Surveyors, Comments On The Announcement Of The 11 New Enterprise Zones.
Peter Chapman, head of rating and compensation at Cluttons, commented: “Given these further announcements, rather than creating 30,000 new jobs, existing businesses will be very concerned that they will lose their staff who will be attracted to these new job opportunities within the new Enterprise Zones, causing a shortage of skilled labour in surrounding areas.
"It may be worth remembering that when Enterprise Zones were introduced in the 1980s, they enjoyed a chequered reputation. High profile successes such as Canary Wharf sat alongside the less impressive zones in Glasgow and the North of England.
“Back then, one of the unforeseen impacts of Enterprise Zones was their detrimental impact on property values of properties which fell outside the designated area. This will now be further exacerbated by labour shortages. However, following successful rating appeals these properties were able to claim substantial savings of up to 25 per cent in relation to their business rates depending on proximity of the premises to the boundary. This silver-lining made narrowly missing out on the full exemption from business rates somewhat more palatable for occupiers outside the zones but does not address potential labour shortages which will impact on the bottom line of these businesses."
For more information, please contact Kathleen MacMillan on 020 7828 5553.
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