Final evaluation of the Lanarkshire Enterprise Zone

The Lanarkshire Enterprise Zone (EZ) aimed to ‘achieve economic regeneration by attracting inward investment and facilitating creation of 7,500 new jobs to Lanarkshire’, as well as preparing 173 ha of land for development. The evaluation aimed to assess the management processes and economic development performance of the Lanarkshire EZ. It looked at: the attraction of business and property development projects; the maintenance and / or generation of additional economic activity and employment; the contribution of the zone to the physical regeneration of Lanarkshire; and the cost effectiveness of the EZs.

The methodology consisted of: a primary data gathering exercise; desk based assessment; consultation of key partner organisations, the development industry and other relevant bodies; and an appraisal of the economy and property markets at local, regional and national level.

The lead management role played by the LEC appears to have been a successful model for Lanarkshire EZ’s industrial and property market regeneration. In property terms, the Lanarkshire EZ has been successful in ensuring that new buildings and land have been made available. Estimates that over the lifetime of the EZ, economic activity generated by its businesses has increased Lanarkshire’s overall GVA by some 3.4%. Costs per job are substantially lower than those observed in earlier evaluations of UK Enterprise Zones. Notes that effective partnership working remains critical, although potentially more difficult to achieve due to different organisational priorities. Highlights concerns regarding the capacity of the market in the West of Scotland, and the need to focus on projects with strategic implications.

In property terms, recommends the continuation of Enterprise Zones or a similar geographic fiscal based incentive for regeneration. In the life of the zone, it is likely subsidies would have to be increased for development to proceed. Suggests that economic development may have to be assisted by fewer or different levers. Concludes that to implement major projects a key challenge will be to develop effective ways of linking employment opportunities stimulated through regeneration activity in disadvantaged areas with high concentrations of those seeking work or jobless.