THOUSANDS of hi-tech new jobs could be created in South Yorkshire after the Government granted massive tax breaks on £300m of capital investment.
Large companies committing to the region’s new Enterprise Zone will receive 100 per cent capital allowances, saving a whopping £250 on the year’s tax bill for every £1,000 spent on buildings and machinery.
The Enhanced Capital Allowance was announced by Chancellor George Osborne after months of negotiations by members of Sheffield City Region’s Local Enterprise Partnership.
It applies to seven of the country’s 22, soon to be 24, Enterprise Zones. The Sheffield EZ comprises three pockets of land close to the M1 near Chesterfield, Sheffield and Barnsley, it is set to launch on April 1 next year.
Sylvia Yates, executive director of the LEP, said it was “fantastic news” that was set to attract large investors.
She added: “We have pushed very hard to get the Enhanced Capital Allowance. It puts us in a very strong competitive position and should enhance our reputation for modern manufacturing and technology and help us capitalise on the assets we have in the area, such as the Advanced Manufacturing Park.”
The £300m of investment which will receive the 100 per cent capital allowance will be released in three tranches of £100m each. The timetable has not be finalised.
The Enterprise Zone also offers free business rates worth up to £275,000 over five years, simplified tax rules and super-fast broadband.
It is hoped the zone will create 12,600 jobs and attract 250 new firms by 2015.