Discovery Park, Sandwich - Enterprise Zone follow up By James Gransby, Partner at Larkings Chartered Accountants

Below are some aspects in more detail:

Business rate discount A maximum of £55,000 per year, for up to five years (i.e. a maximum discount of £275,000 over a five year period). There is no limit on the percentage discount, so a business paying rates of less than £55,000 per year could receive a discount of 100%.

Period that incentives will be in force

Following the announcement on 17 August 2011 that Discovery Park in Sandwich (the current Pfizer site) has been granted Enterprise Zone status, which I mentioned in my article last month, further details have now been released..

Discovery Park will be one of 22 Enterprise Zones following creation of this new status in the March 2011 Budget Statement.

It has been announced that the benefits are not restricted to a particular type of business, all businesses are eligible.

This opens the doors for businesses of all types and sizes to take advantage of this opportunity, including complementary service providers such as bars and restaurants, together with those businesses that can put existing site accommodation, equipment and facilities to good use.

Businesses in Discovery Park will qualify for:

* a 100 per cent business rate discount worth up to £275,000 over a five year period

* radically simplified planning approaches in the zone; and

* Government support to ensure superfast broadband is rolled out in the zone.

It has come to light that Discovery Park will not initially be one of the areas where businesses will be eligible for enhanced capital allowances for investment in plant and machinery, which is available in a limited number of Enterprise Zones, although this is under review.

The benefits of the Enterprise Zone, including the business rate discount will be available to companies moving onto the site between 1 April 2012 and 31 March 2015. The discount period would therefore run out completely for the last companies benefiting, in 2020. Businesses already on the site in April 2012 will be eligible at that point.

Simplified planning regime timescale This will not be known until the Local Development Order is developed by Dover District Council.

Below are some statistics relating to Discovery Park, obtained via a HM Treasury press release: * Size: Sandwich site will be 99.4 hectares;

* Sector Focus: Sandwich will focus on life sciences, pharmaceutical,bio-

technology and broader R&D (including chemicals, food and renewable energy);

* Tax breaks: Sandwich will save business £21.4 million;

* Job creation: Local Enterprise Partnership estimates that Sandwich will create 2400 jobs and 190 businesses by 2015;

* Planning: simplified regime will cover change of uses without the need for planning permission to be sought;

* Broadband: There are excellent data (broadband) connections at Sandwich.

The Pfizer site is currently for sale, promoted by CB Richard Ellis (CBRE), a brochure can be found online at www.discovery- park.co.uk/pdf/brochure.pdf

As mentioned in the text, the Zone covers 99.4 hectares. This map sets out the boundaries of the Zone:

Larkings can serve established and start-up businesses already located in or looking to locate in Discovery Park.

Larkings are a leading Firm of accountants with offices in Canterbury, Ashford and Maidstone and have been established for over 75 years in East Kent which means we are perfectly placed to serve businesses in Discovery Park.

For more details on the above or to arrange an appointment at one of our branches, contact James Gransby on 01622 754033, or email jgransby@larkings.co.uk

James Gransby

The brochure mentions that there are wide ranging facilities available on the site, the provision of which is subject to change dependent on the nature of any future site development, but currently include:

A restaurant; small cafe outlets for snacks and drinks; health club; social and sports club; child care facility (in Sandwich town).

Together with shared site services including: Waste treatment via the Waste Water Treatment Facility; Incinerator and Combined Heat and Power comprising two CHP units together with a steam turbine generator and two low pressure standby boilers.

Locate In Kent, the County's investment promotion agency, is providing its support and assistance to businesses looking to locate in Discovery Park.

EIGHT