A MULTI-MILLION-pound government policy to boost job creation has failed to deliver, research has revealed.

In 2011, the government announced “enterprise zones” in England to try to improve economic growth, forecasting 54,000 new jobs between 2012 and 2015.

But BBC-commissioned research found by 2017 only 17,307 jobs had been created in 24 zones around England – and in two areas the number of jobs had fallen.

The Harlow Enterprise Zone, based off Church Langley, has created 1,057 jobs.

The government said it had created 38,000 jobs since 2012.

Enterprise zones offered cheaper business rates, superfast broadband and lower levels of planning control.

The research, which was conducted by think tank charity Centre for Cities using data from the Office for National Statistics (ONS), showed the number of jobs created fell short by nearly three-quarters of the amount predicted in the government’s initial announcement in 2011.

ONS figures analysed by Centre for Cities suggested the Bristol Temple Quarter and Bath and Somer Valley enterprise zone generated the most jobs between 2012 and 2017 with a net increase of nearly 5,500.

But Lancashire came out worst with a loss of 2,347 jobs. The Humber enterprise zone was the other area to have lost jobs by 2017 – with 320 fewer.

The MHCLG said it had invested £101m in enterprise zones.

But a BBC Freedom of Information request to 22 Local Enterprise Partnerships (LEPs), their councils and the government suggested £316.6m of public money had been spent on the overall scheme.

The total figure is likely to be higher as, two local authorities – Manchester and Vale of White Horse – said they did not hold the relevant information, while Bristol refused to disclose its figure because of the cost of retrieving the data.

In December 2013, the National Audit Office published a paper detailing the government originally expecting 54,000 additional jobs to be generated by 2015 but this estimated figure was later revised to “between 6,000 and 18,000”.

Mr Swinney described the policy as being “not that effective” and “out of kilter” with reality.

“Very little reward has come out of the money spent on enterprise zones,” he said.

“The number of jobs created – a key measure of success for the policy – has been well below expectations, and the jobs that have been created have tended to be lower-skilled, lower-paid positions.”

“That money should’ve been better used on skills training,” he added.
The Ministry of Housing, Communities and Local Government said it did not recognise the methodology used in the research.

A spokesperson said: “We’re proud that since 2012, Enterprise Zones have supported over 877 businesses, attracted £3.5bn of private sector investment and created over 38,000 jobs.

“Enterprise Zones are just one part of our extensive package of support for communities – including the £12bn Local Growth Fund – which is creating jobs, helping local businesses to grow and building an economy that works for everyone.”