HC Deb 26 February 1981 vol 999 cc959-60
5. Mr. Anthony Grant

asked the Chancellor of the Exchequer if, in his forthcoming Budget, he will have regard to the need to provide additional financial incentives to enterprise zones in the larger cities.

6. Mr. Steen

asked the Chancellor of the Exchequer if, in his forthcoming Budget, he will have regard to the need to provide additional financial incentives to enterprise zones in the larger cities.

Mr. Brittan

My hon. Friends would not expect me to anticipate my right hon. and learned Friend the Chancellor's Budget Statement.

Mr. Grant

Does my right hon. and learned Friend agree that there is a danger that rate exemptions in those zones could be cancelled out by increases in business rents? In view of the importance of low overheads, particularly for small businesses, will he think carefully about that possibility?

Mr. Brittan

If that were to happen it would have serious consequences. We shall look into that when the enterprise zones become active.

Mr. Steen

Is the Minister aware that in Liverpool already there is a natural enterprise zone in the shape of about 60 small firms which are clustered together in man-made caves in the south docks, where they are paying £5 a week rent? Is my right hon. and learned Friend further aware that that will all be destroyed by the urban development corporation's grandiose plans? Will he ensure that there will be special places in the enterprise zone for one-man firms and starter firms at low rents so that those firms will be transferred and others can be started without being driven out of business permanently?

Mr. Brittan

I shall look into the point raised by my hon. Friend. In Liverpool, there has been a delay in the setting up of the enterprise zone, caused by the difficulty in reaching agreement with the Liverpool city council, which so far has not been able to agree to the sort of planning regime to which some of the other councils involved with enterprise zones have agreed.

Mr. Robert C. Brown

Is the Minister aware that a prime industrial development site in the centre of Newcastle—Fenham barracks—has had many firm inquiries since the announcement about the enterprise zones? Those inquiries have now literally dried up, awaiting the introduction of the enterprise zone. Is it not a case of simply exporting unemployment from one area to another?

Mr. Brittan

I do not think that that is so. During the build-up period for the enterprise zones, people will be waiting and anxious to participate, but the degree of interest in the enterprise zones is very considerable. It is most noticeable that local authorities of political complexions quite different from that of the Conservative Party have raced into the act of trying of get enterprise zones in their areas.

Mr. Bill Walker

Will my right hon. and learned Friend and the Chancellor of the Exchequer, when giving consideration to enterprise zones, remember Scotland, and in particular the city of Dundee, where I am sure a scheme of this sort would be very welcome?

Mr. Brittan

I shall take note of my hon. Friend's point.