Enterprise Zones in Redcar and Cleveland
Enterprise Zones (EZ) are great places to do business especially for both new and expanding firms. Simplified planning and financial incentives are available to qualifying businesses (ie those within the target sectors) by way of Planning Performance Agreements (PPA) and Enhanced Capital Allowances (ECA).
A PPA is an agreement between a developer and a local planning authority (and usually other key players such as statutory consultees) setting out who will do what and when. The PPA will set out agreed timescales, consultation arrangements, information required, key milestones and timescales, to ensure that a planning application meets the required quality standards and a speedy decision can be made. A formal planning application has still to be submitted but following a successful PPA process, approval should be relatively straightforward.
ECA entitles companies locating on to an EZ site to apply to receive first-year capital allowance at 100% on qualifying plant and machinery, to a maximum of £100 million to offset against corporation tax when the investment is made before March 2020.
Redcar | Cleveland is one of only a small number of areas across the country that can offer large-scale occupiers ECA on their plant and machinery. Where the company makes a trading loss for tax purposes, and the loss is not offset against other group profits or carried back, it can be carried forward indefinitely to be set against taxable profits from the same trade in future accounting periods.
All our EZ sites offer excellent transport connections, with road links to the A66, A19 and A1(M), main line railway stations offering passenger and freight services, an international airport on the doorstep and access to one of the UK’s largest deep water ports, Teesport.
In Redcar | Cleveland, there are three EZ sites aimed at advanced engineering, chemical and renewable energy sectors:
- Prairies Site
- South Bank Wharf
- Wilton International
Prairies Site is a 55 hectare cleared industrial area close to Teesport (the UK’s largest exporting port) and Wilton International. Adjacent to South Bank Wharf, the area forms part of the steel site now within the boundary of the South Tees Development Corporation (STDC), an exciting new enterprise that is crucial in promoting the economic development and business growth in the borough. The vision for the STDC is to see the area transformed into a hotbed of new industry and enterprise for the Tees Valley that makes a substantial contribution to the sustained economic growth and prosperity of the region and the communities it serves. The vision is underpinned by the aspiration for new development to deliver a high value, low carbon, diverse and inclusive circular economy for the Tees Valley.
South Bank Wharf
South Bank Wharf is an 80.7 hectare site adjacent to Teesport, the UK’s largest exporting port and has river frontage. It is close to the integrated chemical site at Wilton International with its cluster of chemical and process industry companies including many of the major international players such as Huntsman, Lotte and SABIC.
Wilton International, has five development plots with a total area of 164 hectares currently available. The sites are located within the fully serviced chemical complex at Wilton International with extensive existing infrastructure including power, steam and water, giving companies locating on the site the opportunity to “plug and play”. The site is close to Wilton Centre R&D facility and has pipe linkages to the North side of the river Tees which offers jetties and storage facilities.
For further information contact our Business Growth Team on:
T: +44 (0) 1642 444366