A RADICAL scheme to bring tens of thousands of jobs to the region was poised for success last night, after a Cabinet minister hailed it as "brave and clever".
Eric Pickles, the Communities Secretary, heaped praise on plans for an 'enterprise zone' spread over 24 sites throughout the Tees Valley - instead of concentrated on a single site, as originally envisaged.
The proposal is being submitted to the Government this week by Tees Valley Unlimited (TVU), which has admitted it faces "a huge task" to win approval for all of it.
Eight of the sites would enjoy business rate relief, while ten have been earmarked for enhanced capital allowances - allowing the costs of plant and machinery to be written off against companies' taxable income.
The remaining six locations would be funded through tax incremental financing (TIF), which allows borrowing against future tax gains to finance current developments.
Overall, TVU - the area's 'local enterprise partnership' (LEP) - hopes to create 1,250 businesses and generate about £4bn worth of capital investment over the next 25 years.
Yesterday, interviewed by The Northern Echo, Mr Pickles made clear that he had already studied the proposals in detail, even before they were submitted officially to his department.
And he said: "I like Tees Valley. I like what they are offering a lot. It's really brave and clever - quite an exciting idea.
"I'm encouraging every enterprise zone to do something similar. They should receive a lot of praise for doing that.
"I did say, in inviting these applications, 'Embarrass us, push us further than we intended. The more ambitious you are, the more happy I will be'."
However, Mr Pickles said his comments were made "without prejudice" to his eventual decision on the scheme, some of which - such as the Tif powers - would require Treasury approval.
Furthermore, some in the North-East are certain to remember that the Cabinet minister promised the region could keep its regional development agency, if it wished - only to axe it some months later.
The Tees Valley was one of 11 areas awarded an Enterprise Zone in this year's Budget, to attract new businesses through lower taxes and fast-track planning rules.
An echo of Margaret Thatcher's flagship scheme to reverse urban decay, the zones would also be eligible for pump-priming Government cash to introduce super-fast broadband connections.
TVU's plan is thought to be comfortably the most ambitious put forward to Mr Pickles, who is expected to give his response next month.
Intriguingly, the Communities Secretary suggested some of the proposals might be achievable under existing local development orders (LDOs) - a little-used power.
Urging council leaders to exploit those powers, Mr Pickles said the enterprise zone could be "the little cherry on the icing on the cake".
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