Many of the sites suitable for offshore energy businesses in Energy Gateway benefit from Enterprise Zone status. Each of these sites, which collectively cover 100 hectares, offers one of the following two benefits:
- Business rate discount – businesses can claim up to 100% discount against business rates that are worth up to £275,000. This can be claimed over a five year period through occupying premises on an Enterprise Zone site. This is the equivalent of £55,000 per year but does not need to be taken as an even annual split. To take advantage of this benefit, a business must be located on the site by the end of March 2021 for eligible Zone 2 sites
- 100% enhanced capital allowances – this tax relief is issued to businesses making large investments in plant and machinery. Businesses wanting to take advantage of the enhanced capital allowance must be located on site and make the claim by the end of March 2020 for Zone 1 sites and by the end of March 2025 for Zone 2 sites
Many enterprise zones also benefit from Local Development Orders (LDOs). These are put in place by the local authority to help fast-track development in these key sites.
The North East Fund
The North East Fund is a £120m investment programme available to SMEs across Durham, Northumberland and Tyne and Wear. Businesses relocating to the area may also be eligible. There are five funds – each with a different investment focus to suit the needs of SMEs depending on the sector in which they operate and where they sit on the growth curve. Find out more here.
Businesses should contact the team at Invest North East England to discuss the latest availability of business grants for investments into Energy Gateway.