Basing View Enterprise Zone
What is an Enterprise Zone?
In 2011 central government launched Enterprise Zones to promote development and commercialisation of defined underused sites, bringing economic and job growth to the local area. Local Enterprise Partnerships were invited to submit proposals to turn certain areas in the country into Enterprise Zones, and in November 2015 the Enterprise M3 Local Enterprise Partnership (LEP) had their proposals approved by central government for three sites; Basing View, Longcross near Chertsey and Louisburg Barracks in Whitehill and Borden.
What does this mean for Basing View?
From 1 April 2017 eligible businesses moving into, or expanding, within the defined zone (see map below) can benefit from incentives, in particular a relief from Business Rates of up to £55,000 per annum for up to 5 years, capped at £275,000 (State Aid de Minimis rules apply), from the date of occupation. Eligible businesses must have moved in by 31 March 2022 to benefit from the scheme and the relief scheme will end on 31 March 2027. Any business rate growth is retained for 25 years to be reinvested into the development of the Basing View Enterprise Zone.
Basing View is already the location for a wide range of organisations. The new plan will include a mix of new office spaces, a business class hotel, residential accommodation and supporting amenities.
As the landowner, Basingstoke and Deane Borough Council has invested £2.3 million in improvements to kick start the regeneration and has appointed award-winning Muse Developments as its developmental partner. Significant investment has already been secured at Basing View with a £50 million Network Rail regional operating and national training centre plus the largest combined John Lewis at Home and Waitrose Store in the country. As a result of Basingstoke and Deane Borough Council agreeing terms with experienced property developer, Abstract Securities, construction of a new five-story 60,000 square foot speculative Grade A office development will begin Q1 2017, with the aim of achieving a BREEAM excellent rating, and is due to complete by Q1 2018.
Enterprise Zone Business Rates Relief Scheme
- If eligible, Enterprise Zone Rate Relief, will be applied against the net charge after all other reliefs have been applied.
- If eligible, business rate relief of up to a maximum of £55,000 per year, but no more than £275,000 over a five year period (State aid de Minimus rules apply)
- To be eligible, the business taking occupation of a hereditament within the boundary (see map above) can be:
- A business which is new to the Basingstoke and Deane Borough
- A business which has moved into the Enterprise Zone boundary from within the borough and satisfied the growth test
- The hereditament must be occupied to receive the relief, if it becomes vacant the relief will cease
Businesses which are vacating a premises within the borough to move to one within the Enterprise Zone will need to evidence that it is due to business growth which cannot be satisfied by staying in the current property.
To demonstrate the growth of the business one the following will be considered, providing they can be evidenced and quantified:
- Occupation of larger premises
- An increase in the permanent workforce and the premises within the Enterprise Zone facilitates that growth
- An increase in turnover and the premises within the Enterprise Zone facilities that growth (eg. New modern premises, new equipment, improved efficiencies in production/service delivery)
- Relocation supports a business already located within the Enterprise Zone (eg. Supply chain efficiency, clustering benefits)