HC Deb 22 January 1986 vol 90 cc219-20W
13. Mr. Hickmet

asked the Secretary of State for the Environment if he will make a statement about the operation of the enterprise zones designated so far, and the effect of the zones upon neighbouring businesses.

Mr. Kenneth Baker

Enterprise zones are successful in restoring economic activity to previously declining areas. By September 1984 over 2,000 businesses employing 48,000 people were located in the zones. This compared with 28,000 people when the zones were designated.

It is difficult to estimate the effect of the zones on neighbouring businesses. There is evidence, both that zones stimulate activity in neighbouring areas, and that they can have an adverse effect.