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Osborne Budget 'unashamedly pro-growth' Osborne Budget 'unashamedly pro-growth'
(about 7 hours later)
The Budget later this month will be "unashamedly pro-growth", Chancellor George Osborne will tell his party's spring conference later.The Budget later this month will be "unashamedly pro-growth", Chancellor George Osborne will tell his party's spring conference later.
He will tell Conservatives in Cardiff it will break down the barriers that stop Britain getting back on its feet.He will tell Conservatives in Cardiff it will break down the barriers that stop Britain getting back on its feet.
Mr Osborne will announce that 10 new enterprise zones will be set up in England in his Budget on 23 March.Mr Osborne will announce that 10 new enterprise zones will be set up in England in his Budget on 23 March.
But Labour says government plans to eliminate the budget deficit by 2015 will damage growth.But Labour says government plans to eliminate the budget deficit by 2015 will damage growth.
Business ratesBusiness rates
Mr Osborne will tell his party's conference that the Budget, the coalition government's second, will confront the forces of stagnation.Mr Osborne will tell his party's conference that the Budget, the coalition government's second, will confront the forces of stagnation.
The chancellor will tell party members that new enterprise zones will be established in areas of England that have been hit hard by the economic downturn - mainly in parts of the Midlands and the North.The chancellor will tell party members that new enterprise zones will be established in areas of England that have been hit hard by the economic downturn - mainly in parts of the Midlands and the North.
Firms will be offered reduced business rates, simplified planning rules and less regulation at a total cost to the Treasury of £100m over the next four years.Firms will be offered reduced business rates, simplified planning rules and less regulation at a total cost to the Treasury of £100m over the next four years.
Earlier enterprise zones set up by the governments of Margaret Thatcher and John Major have been criticised by two reports this week for creating too few jobs at too high a cost, and for providing only a short-term boost.Earlier enterprise zones set up by the governments of Margaret Thatcher and John Major have been criticised by two reports this week for creating too few jobs at too high a cost, and for providing only a short-term boost.
But ministers claim to have learned lessons from the past, and say they will work in areas with high potential for growth, while working closely with local councils to tailor specific incentives to local needs.But ministers claim to have learned lessons from the past, and say they will work in areas with high potential for growth, while working closely with local councils to tailor specific incentives to local needs.
Treasury minister Justine Greening said the Coaltion plan would ensure "longer term" growth, adding that "pumping money" into areas - which she said the previous government had done - was not enough.
While there had been growth in the past decade, she said it had been in "one sector - financial services - and in one region - the South East".
"I think there's a statistic that very clearly shows that for every one job that was created between 1998 and 2008 in the North and the Midlands, there were ten created in the South East - so we clearly have an imbalance.
"That's one of the reasons why we're bringing forward one of our proposals that we'll have around stimulating growth - enterprises."
The first enterprise zones were launched in 1981 by Michael Heseltine, offering tax breaks to firms to create jobs and prosperity.The first enterprise zones were launched in 1981 by Michael Heseltine, offering tax breaks to firms to create jobs and prosperity.
They were pioneered in areas such as London's Docklands, the Isle of Dogs, Corby and Tyneside. They were pioneered in areas such as London's Docklands, Corby and Tyneside.
'Reverse gear''Reverse gear'
The coalition government's autumn Spending Review outlined plans to cut about £80bn by 2015.The coalition government's autumn Spending Review outlined plans to cut about £80bn by 2015.
Labour has criticised ministers for going "too far, too fast" in attempting to bring down the deficit, arguing it should be halved in four years not eliminated. Labour has criticised ministers for going "too far, too fast" in attempting to bring down the deficit, arguing it should be halved in four years, not eliminated.
Shadow Chancellor Ed Balls says the coalition government is endangering the UK's future by "putting the economy into reverse gear". Shadow Chancellor Ed Balls has said the coalition government is endangering the UK's future by "putting the economy into reverse gear".
But the government says the spending cuts are needed because of the financial "mess" left behind by the last Labour government and are vital to getting the economy moving.But the government says the spending cuts are needed because of the financial "mess" left behind by the last Labour government and are vital to getting the economy moving.