Can your town benefit from government’s new Freeport programme?

Ashley Reeve

The UK government is inviting towns that are sea, air or rail ports to bid for selection in order to establish initially seven, and eventually ten, Freeports.

Designed to attract major domestic and international investment, those places selected for Freeport status will benefit from simplified customs procedures, a wide package of tax reliefs, and streamlined planning processes which will help boost redevelopment, regeneration and innovation.

The aim is to transform historic sea, air and rail ports into national hubs for trade, innovation and commerce, which will regenerate regions and boost communities by attracting major domestic and international investment.

The new Freeports policy involved the development of an ambitious new customs model which draws on international best practice while building on the UK’s existing customs arrangements.

A firm can import goods into a Freeport without paying tariffs, process them into a final product and then either pay a tariff on goods sold into the domestic market, or export the final goods without paying UK tariffs.

Areas given Freeport status will also reportedly benefit from tax relief on a wide range of activities including purchasing land, constructing or renovating buildings, investing in new plant and machinery assets and on Employer National Insurance Contributions.

The first Freeports will be established in England in 2021 and sea, air and rail ports from across England are encouraged to apply, working in tandem with their local leaders, businesses and others in their communities.

The government is working collaboratively with the devolved administrations to establish at least one Freeport in each nation of the UK in addition to those being established in England.

There is a commitment to levelling up all regions of the UK by spreading opportunity through private enterprise, creating jobs and seizing the opportunities presented by leaving the EU.

The Freeports Bidding Prospectus is now live on the gov.uk website and towns who meet the criteria are encouraged to respond.

Bidders will need to submit bids by Friday 5 February 2021, and bids will be assessed by a MHCLG-chaired assessment panel in March 2021, with decisions made in Spring.

The timing of this process means you may not specifically link your Towns Fund proposed projects with the Freeport programme. However, you can still pursue this opportunity in tandem with your Town Investment Plan, and you could to talk with neighbouring local authorities who may be applying to discuss co-benefits of any Freeport proposals and your TIP vision and projects.

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