Royal Docks to get “enhanced capital allowances”

Budget 2012: The Royal Docks enterprise zone is to benefit from enhanced capital allowances as part of a £70m London development fund.

In his budget speech today Chancellor George Osborne said he was creating a £70m London development fund to be administered by the Mayor of London.

Osborne said enhanced capital allowances would be offered to attract investment in the Royal Docks where Chelsfield was named as developer for the 3m sq ft Silvertown Quays mixed-use scheme at the weekend.

He also said the government is working with a dozen large pension funds in order to invest in the UK’s infrastructure, including roads, railways, energy, water and broadband.

A deal is being struck with Manchester city Council over a major transport investment.

Tax increment financing will also be encouraged in councils across the country.

GVA senior director Gerry Hughes said: “As the population of London continues to move towards an all time peak the demand for new homes, access to jobs grows and the strain on infrastructure increases. The £70m for shovel ready schemes will be snapped up.”