The government’s creation of enterprise zones has been hailed as a good plan for creating growth in areas of the country not greatly exposed to public sector spending, according to Centre for Economics and Business Research (Cebr).

The chancellor announced the creation of 21 new enterprise zones in yesterday’s Budget.

Reacting to the Budget, Cebr says: “We will have to see how the precise details emerge, but in principle it sounds like a good plan to promote private sector growth in areas of the UK economy that are peculiarly dependent on public spending.

“In Northern Ireland the plan to run a lower corporation tax rate (à la the Republic of Ireland) could eventually lead to regional tax competition that bring corporation tax levels down in the long run.”