HC Deb 11 March 1982 vol 19 cc963-4
17. Mr. Anthony Grant

asked the Chancellor of the Exchequer if he will review the tax incentives available to enterprise zones.

Mr. Brittan

The private sector's response to the enterprise zones has been encouraging, but it is still too early to judge which features have been most helpful and therefore it is too early to review the tax incentives.

Mr. Grant

Is my right hon. and learned Friend aware that some local authorities in enterprise zones are charging high rents because of the Government's subsidy on rates? Will he consider making it mandatory that such local authorities should dispose of the freeholds if they are requested to do so?

Mr. Brittan

I am grateful to my hon. Friend for drawing my attention to that problem. I hope that he will give us further details, as we must obviously consider it.

Mr. Eastham

Is it not a farce to introduce enterprise zones only three or four miles away from partnership areas—the very areas that need the sort of assistance that the Government have decided to give to the enterprise zones?

Mr. Brittan

There is no inconsistency in doing that, because the enterprise zones have a particular role to play in stimulating specified portions of the older industrial areas. Their task is worth while and the fact that there may be other areas of benefit comparatively close by is not an obstacle or an objection.