Up to ten new innovative Freeports will be opened across the UK
as the Government seeks to level up the country and seize on
the opportunities leaving the EU has presented.
A consultation has been launched setting out the Government’s
vision for Freeports, with the aim of announcing the location
of the new zones at the end of this year so they can be open
for business in 2021.
Chief Secretary to the Treasury, , said:
“Freeports will unleash the potential in our proud historic
ports, boosting and regenerating communities across the UK as
we level up. They will attract new businesses, spreading jobs,
investment and opportunity to towns and cities up and down the
country.
“This is all part of our mission as an open,
outward-looking country, championing global free trade with
vibrant Freeports that work for all of the UK.”
Secretary of State for International Trade, , said:
“We are taking back control of our trade policy, and
opening every corner of the UK to opportunities across the
world.
“Freeports will unleash the potential of our historic
ports, creating jobs and regenerating communities across the
UK. These hubs will also deepen partnerships around the
world as we restore our economic and political
independence.”
Business Secretary, , said:
“Freeports represent a fantastic opportunity for our
businesses to increase their trade with companies from all over
the world.
“Not only will they help create jobs and level up the UK,
but they underscore our commitment to championing global free
trade – unleashing our country’s potential.”
Communities and Local Government Secretary, , said:
“Our new Freeports will drive forward investment and
regeneration, delivering high-skilled jobs and new homes for
people across the country.”
Minister for the Northern Powerhouse, , said:
“People across the Northern Powerhouse can look forward to
a new era of jobs and prosperity unlocked by this new
generation of Freeports.
“They will unleash the potential of communities both by
boosting trade with our friends across the globe and
transforming surrounding areas into hotbeds of innovation where
businesses will grow and create new well-paid jobs.”
Freeports will boost trade, jobs and investment with a view to
building innovative business clusters that benefit the local
area as part of the Government’s commitment to level up every
nation and region.
Freeports will also offer an exciting opportunity for
cutting-edge customs, transport and green technologies to be
trialled in controlled environments, before being adopted more
widely in relevant sectors of the economy. The Government
will work in close partnership with the Devolved
Administrations so that all nations of the UK are able to share
in the benefits of Freeports.
Benefits of the 2020 Freeports model could include:
- Goods brought into a Freeport do not attract tariffs until
they leave the Freeport and enter the domestic market.
- No duty is payable if they are re-exported.
- When raw materials are imported and processed into a final
good, duties are only paid on the final good.
- Freeports could be located inland as well as adjacent to
ports. This can reduce relocation or investment costs for
existing manufacturing sites near ports.
- A full customs declaration would not be required to move
goods into a Freeport. This saves businesses time and makes it
easier to import goods.
- Planning reforms to help sea ports develop within their
boundaries and empower local councils to greenlight much-needed
local construction projects.
- A regeneration agenda to level up the local areas around
Freeports
- Innovative environments to trial new technologies.
- Challenge-based initiatives to build collaborative
partnerships between ports, businesses and innovators
In addition, the Government is considering tax measures
that aim to:
- Increase investment in infrastructure, construction and
machinery in Freeports to raise productivity.
- Incentivise research to stimulate innovation in Freeports.
- Cut costs associated with processing goods through a port.
- Reduce the costs of hiring workers working in Freeport
sites.
The UK’s high standards with respect to security, safety,
workers’ rights, and the environment will not be compromised.
Once the 10-week consultation is completed, the Government will
invite sea, air and rail ports to bid for Freeport status on a
competitive basis.
