Economic activity will be displaced from elsewhere in the country
These Area Based Incentives have been heavily criticised. These include the possibility for use as tax havens, smuggling, money laundering, lowering regulatory standards and a way to erode workers' rights. A key criticism is that many businesses and jobs simply relocate from other parts of the region rather than being new activity, leading to a lack of net job growth overall. In this paper, we examine the plans for Area-Based Incentives, with a focus on Scotland. We look at the evidence of their effectiveness in the context of a modern industrial strategy. Finally, we make recommendations on a different approach to business incentives that drives fair work and real economic growth.