Port Talbot could be designated as an Enterprise Zone by Welsh Government in a step to further assist the area against the impact of the Tata Steel announcement.
Economy Minister Edwina Hart said the creation of an Enterprise Zone was a proposal being considered by Welsh Government to provide further potential support and investment to the Port Talbot area following yesterday’s announcement that 750 jobs would be lost at its steel plant.
But the move would require cooperation from the UK Government to provide the Enterprise Zone with the full package of policy levers, as Enhanced Capital Allowances (ECAs) are a matter for the UK Government.
Addressing the Assembly, Mrs Hart said:
“With the agreement of the First Minister, I have today written to the Chancellor of the Exchequer setting out our proposal to create an additional Enterprise Zone in Wales. An Enterprise Zone that encompasses the Port Talbot site would not only send an important signal to the industry, it would also create a growth environment within which other business and industry could flourish.
However, for maximum impact, such an Enterprise Zone would need the full package of policy levers including Enhanced Capital Allowances (ECAs). As ECAs are a matter for the UK Government, I have asked for the Chancellor’s early response as to whether the UK Government would be agreeable this.”