ABSTRACT
The manipulative (or interventionist) component of the enterprise strategy-the use of incentives to attract investment to areas where it would not otherwise goincurs public costs in the form of tax income foregone and the more direct costs of providing infrastructure. There will be occasions, however, when the same end of increased investment in or near to inner city areas can be achieved at little or no public expense. They will, it must be admitted, be largely fortuitous, depending as they do on circumstances (usually ownership of land) which make development feasible without benefit of subsidy or incentive. The potential for such unlevered development which will have an impact on inner city areas is an unknown quantity (and will vary over time depending on the state of the market, the perceived profitability of such development schemes and so on) but it may be very considerable. Indeed, the amount of unsubsidised potential development may exceed the total volume of investment that may be expected to be levered into designated inner city areas.
