By Marcus Leach

George Osbourne has announced that two new enterprise zones will be created in order to cushion the blow of those workers who lost their jobs as part of the BAE Systems cuts.

The Chancellor told the BBC that one zone will cover BAE's Warton and Samlesbury sites in Lancashire, while the other will surround the firm's Brough facility in East Yorkshire.

All companies who set up in the new enterprise zones will be exempt from paying business rates. The news of the two new zones will be welcomed given that BAE is cutting 900 jobs at Brough, 822 at Warton, and 565 at Samlesbury.

"We are doing everything we can to create new jobs on those sites," Mr Osborne told the BBC's Politics Show North West.

"We are going to get new companies into those sites, we are going to give jobs to people who have lost their jobs at BAE."

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