In the 2011 Budget, the government announced the creation of new enterprise zones (EZs) to encourage economic growth through a mix of financial incentives and a more relaxed planning regime. EZs are allocated to Local Enterprise Partnerships (LEPs). Some EZs were allocated in the 2011 Budget and the remainder following a competitive bidding process. For more information, see Legal update, 2011 Budget: property implications: Enterprise Zones and DCLG: Enterprise Zones.

Former special zones, originally introduced by the government in 1980 to encourage industrial and commercial activity, usually in economically depressed areas. Under the Local Government, Planning and Land Act 1980, local authorities could designate land within their areas as EZs. Each zone was normally designated for a fixed life of ten years and the final designations came to an end in 2006.

The original EZs were a government experiment to see how the relaxation of planning control, exemption from non-domestic rates and certain other fiscal incentives, could help with the regeneration of run-down and derelict urban areas. For more information, see Legal update, Lessons to be learned about Enterprise Zones.