§ 40. Mr. HardyTo ask the Secretary of State for the Environment what is his estimate of the total cost, including the loss of rate fund compensation of enterprise zones for the period since the introduction of these zones until the zone-free period has expired.
§ Mr. TrippierThe three principal components of the cost of the EZ experiment are: grant paid to local authorities in respect of rate revenue foregone from 623W properties on the zones; tax revenue forgone in the form of tax allowances for expenditure by developers on construction of commercial and industrial properties there; and public sector investment attributable to the zones. The final cost will therefore depend upon when development occurs and the extent of that development. In the nature of the EZ experiment, this cannot be predicted; nor is it possible to predict the effect of the introduction of the uniform business rate on the final cost. No estimate of what that cost might be has therefore been made.
Mr. HargreavesTo ask the Secretary of State for the Environment how many enterprise zones have been established to date; and whether he intends to establish any further areas.
§ Mr. TrippierTwenty-five enterprise zones have been established in the United Kingdom to date. My right hon. Friend has no plans at present to designate further zones.