COUNCIL TO FUND TAX BREAKS FOR BUSINESS
Government scheme for Ceramic Valley ends this month
COUNCIL funds will be used to give businesses £3.4million of tax breaks – to entice them into North Staffordshire’s enterprise zone.
Stoke-on-trent City Council is set to continue offering companies moving into the Ceramic Valley Enterprise Zone business rates discounts of up to £60,000 a year, with the aim of accelerating job creation.
A government-funded scheme has been running at five Ceramic Valley sites since the zone was launched in 2016, but is due to end on March 31.
Council leaders have been told there will be no more central money for the tax breaks, and so are planning a locally-funded scheme for the next five years.
Eligible office, manufacturing and logistics businesses moving to the Ceramic Valley sites until 2026 will be offered three years of discounted business rates.
The scheme will be initially funded by the authority, but the council say it will eventually pay for itself by generating higher business rates income.
According to a council report, the Ceramic Valley has created more than 1,000 jobs since 2016, and currently generates additional business rates of £1.1million a year – expected to rise to £6million a year by 2042.
A total of 44 units have been built across the zone, of which 17 are occupied.
Cabinet members will rubberstamp the decision to extend the BRD scheme when they meet next Tuesday.
Council leader Abi Brown said: “We have created one of the most successful enterprise zones in the country, generating hundreds of jobs and improving the local economy by £18.55m.
“Development has also continued at pace through the pandemic.
“Its successes are further proof that Stoke-on-trent is powering up in response to the coronavirus.
“We want to drive forward business growth and accelerate more new jobs in the area.
“Local, regional and national businesses need to know we are a place committed to supporting them and continued growth.
“Now is not the time for us to shy away from investing in our businesses for the future – this initiative demonstrates exactly our commitment to the contrary and by investing now we will ultimately improve the local area and create more jobs.”
Business rates discounts are offered to companies moving to Tunstall Arrow, Highgate and Ravensdale, Chatterley Valley East and Cliffe Vale – different incentives are in place at the sixth site, Etruria Valley.
While the CVEZ was originally aimed at ceramics and advanced manufacturing businesses, it has been much more successful at attracting firms in other sectors, such as logistics, equipment rental and wider manufacturing. But Jane Ashworth, left, leader of the Labour group on the city council, believes the government should still be funding the tax breaks.
She said: “Why should the council have to spend £3.4m of taxpayers’ money on this, especially as they’ve just made £14million of cuts.
“If the government was serious about levelling up places like Stoke-on-trent it would still be funding these business rates discounts.”
The proposal to continue to BRD scheme has been welcomed by business leaders.
Alun Rogers, chair at Stokeon-trent and Staffordshire LEP, said: “These proposals would go some way in continuing to attract and drive growth and recovery throughout the coming years.”