Here we go again...

From the BBC:

The government has announced locations for new "enterprise zones" in England to try to boost economic growth. Ministers said 30,000 new jobs would be created by 2015 by giving cheaper business rates, superfast broadband and lower levels of planning control...

Prime Minister David Cameron said: "We are determined to do everything we can to make Britain the best place in the world to start and grow a business. Enterprise Zones are a major step towards delivering this - cutting business taxes, easing planning restrictions and giving business the tools they need to invest and expand.

Successive UK governments have mucked about with Enterprise Zones with lower Business Rates (which are tax on land ownership, and not a tax on business), and all that happens is that rents go up to soak up the Business Rates cut. Simple, observable facts. Ditto with SDLT-free zones.

There's another variant on these, whereby the buildings qualify for capital allowances - all that happens is that the builders bump up their prices accordingly so that the net cost of the building ends up at a fair price.

"How can builders do this?" you may ask "Wouldn't other builders bid the price down to market value?"

Well no, because the owner of the land, who has the whip hand, appoints the builder and they split the difference somehow. And if you bought the land with the intention of trading there, no doubt your accountant will tell you that the most profitable use of that land is to build and sell an overpriced building.
-----------------------------
I suppose the good news is that the Tories have come up with something that will prevent riots and looting in future:

"David Cameron is being urged to accelerate tax breaks for married couples as part of his moral clean-up of Britain following last week’s riots."

You can just see it, can't you? If ever the riots and looting kicks off again, the police won't need truncheons and shields, they'll need megaphones. They can march line abreast up to the rioters and solemnly announce that if their mothers can find somebody to marry them, while they might admittedly lose up to £200 a week in extra benefits, their new husband will get £10 a week knocked off his PAYE. That'll have the little scrotes scurrying right back to their council estates to pass on the glad tidings, eh?