HAMPSHIRE is in the running to be one of the Government’s next low tax “enterprise zones”, Communities Secretary Eric Pickles has announced.

Two “expressions of interest” have been submitted to establish one of the zones in which taxes are cut and planning rules stripped back to attract new businesses and create jobs.

The Government will use public money “if needed” to ensure that superfast broadband is also rolled out throughout the zone.

But the bidders will face tough competition from 27 rivals across England to be among the final ten locations, which will be chosen because they offer the “best prospects to increase growth”.

The south east missed out on the first round of zones, announced earlier this year.

Proposals will now be submitted by the new Solent Local Enterprise Partnership (LEP), covering south Hampshire including Southampton, and the new Enterprise M3 LEP, covering Basingstoke. The LEPs bring together local business, education and council leaders to generate economic growth.

The zones attract no new cash but eligible businesses would get discounted rates worth up to £275,000 over five years.

They should also have access to the superfast broadband and councils will get to keep any increase in rates for up to 25 years to plough back into development.

And, to “radically simplify” planning, permission will be automatically granted for projects.

Local development orders will speed up the process by waiving the need for approval from councillors for most planning applications.

It is seen as a big incentive for firms but could prove deeply unpopular with residents, who will find it difficult to block developments.

Communities Secret-ary Eric Pickles said: “I’m delighted by how many areas have |put themselves forward, but only the best |applications will get a zone.

“Enterprise zones will transform twenty one under-utilised parts of the country into business magnets attracting new companies to the area with tax breaks and simplified planning regimes.”