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As A Result, Considerable Effort Must Be Made Marketing It To Potential ...

As a result, considerable effort must be made marketing it to potential investors (Brindley et al 1996: 21). Steps were taken to make it attractive to private investors by setting up an Enterprise Zone (EZ) on the Isle of Dogs.
Enterprise Zone Initiative
An EZ is a designated area in which commercial development is encouraged through a range of incentives. For the Isle of Dogs, the EZ was installed for 10 years and incentives included exemptions from rates, exemption from Development Land Tax for 3 years, relaxed planning controls, 100% tax allowance on building costs and exemptions from training levies, although tax incentives were not available for the construction of homes (Hillman 198?a). While the initial intention was for the EZ to attract light manufacturing into the area, the LDDC felt that the decline in the manufacturing industry would make such an approach less successful in the long term, and focused instead on trying to attract newer industries (Foster 1999:81).
The LDDC invited developers to provide housing for those of economic means greater than the average of the area: The provision of a wide range of housing is crucial; it will attract growth firms, balance the social / income profile and improve both the physical image of the area and the quality of life (LDDC Information Pack, early 1980s: Housing Opportunities in Docklands). If successful, the resulting image could help the area attract more private investment.
Funding
In addition to the private investment coming into the Docklands area, the LDDC was also given substantial government funding, as shown in the table overleaf. This shows how Docklands received comparatively huge sums of public funding: in 1990/1, they received over 50% more UDC funding than the other 11 UDCs combined.
It has also been argued that the tax breaks for investors were, in effect, further funding for development at the expense of the tax payer. Rogers and Fisher note that the Government has refused to quantify the cost of these fiscal incentivesbut they are likely to exceed £1 billion (1992: 161).

Year
LDDC
£million
All UDCs
£million
LDDC share of UDC total*
%
Total UK Urban Funding
£million
LDDC share of Urban Funding
%
Number of UDCs**

1981-2
33.5
38
88
162
19
2

1982-3
41.5
62
67
283
14
2

1983-4
66.5
94
71
325
19
2

1984-5
58
88
66
450
13
2

1985-6
60
86
70
436
13
2

1986-7
65
89
73
429
15
6

1987-8
128
134
96
483
17
6

1988-9
116
234
50
559
25
12

1989-90
256
436
59
760
34
12

1990-1
333
550
61
905
37
12

Total***
1,157.

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