For many years, London has been a leading international business destination, with a wealth of international businesses based in the city. However, the capital city may have a rival hot on its heels with the launch of Birmingham’s city centre enterprise zone.
Lord Heseltine has been heavily involved in the project
The venture has already generated significant international interest, with 20 plus global companies having already entered into discussions to acquire space in the area. This was revealed by John Lewis chief executive Andy Street, who also heads Birmingham’s Local Enterprise Partnership (LEP), at the official opening of the zone last Friday.
Also present for the ceremony were Chancellor George Osborne and Lord Heseltine, both of whom have been heavily involved in the project from the start.
While relocation from London may seem risky at the present time, however, there is a distinct financial advantage as Birmingham will be offering five years of business rate exemptions to firms relocating to the zone. This is thanks to provisions set by the Chancellor in 2011’s Budget.
The LEP has already started developments within the zone, having already invested £125 million into the infrastructure of the area. Superfast broadband will be installed, while the metro system will be extended to allow for ease of transport. The Paradise Circus area is next on the agenda for refurbishment, which should be relatively easy given that the enterprise zone has been allowed a special dispensation for fast-tracked planning permission.
Yet it is not only commercial properties within the zone that the LEP is concerning itself with, as the services offered by Birmingham Airport have come under scrutiny. It will also be extended in order to allow for a greater volume of international flights, mainly to the USA and China.
Tenants of the zone are largely expected to fall into three sectors – advanced manufacturing, financial and professional services and creative and digital firms. This is because, according to Mr Street, “these are Birmingham’s natural strengths.”
Altogether, around 40,000 jobs are expected to be created in the zone, with an additional £2.8 billion of growth expected to be generated there.
At the opening ceremony, Mr Street said; “The Government is giving us a real opportunity and Birmingham is trying to seize it with both hands.”
However, he believes that the success of the venture is highly dependent upon the proposed High-Speed Two rail link connecting Birmingham and London.
He stated; “It will put Birmingham at the heart of the transport network, not just for London but Manchester, Leeds, Scotland and in time, the Continent too.”
Do you think Birmingham will be able to rival London as a financial centre within the next few years, or will the development fall apart if the Government decides to abort plans for the HS2 rail link?
