A Report by Cambridge Econometrics for HM Treasury and HM Revenue and Customs
concluded that 100% of the benefits from NNDR relief are passed into rents and therefore accrue to landlords, although the range of uncertainty surrounding this statistical estimate puts the boundary at somewhere between 65% and 150%. Either way, the general conclusion is that the majority of tax-saving benefits from NNDR exemption on EZs accrued to landlords rather than to tenants. Why, then, did the government repeat this expensive give-away when declaring a new series of Enterprise Zones recently? Are they incapable of learning anything?