The International Trade Committee today publishes the
Government’s response to its report on UK
freeports.
In its response, the Government commits to providing annual
updates to the Committee on the progress of freeports and accepts
the Committee’s recommendation to produce an evaluation of the
impact of the policy within five years.
However, the Government does not agree to publish an impact
assessment for the freeports policy that outlines its estimated
effects on economic growth, increased trade and investment, and
job creation. Instead, it undertakes only to publish “costings”
for the freeports programme.
The Government rejects the Committee’s recommendation that the
Department for International Trade oversee freeports. Lead
responsibility for the policy will continue to sit with the
Ministry of Housing, Communities and Local Government.
The Government also swerves a recommendation that a framework be
devised to assess whether economic activity at freeports is newly
created or has merely been relocated from elsewhere in the UK. It
argues that freeports are designed to encourage new investment
rather than harmful displacement.
Commenting on the Government response, , International Trade Committee Chair,
said:
“While the Government’s commitment to provide annual updates on
the progress of freeports is welcome, the decision to ignore our
recommendation to publish an impact assessment is disappointing.
It is not enough to publish just the costs of the programme.
“Without details of the economic growth, increased trade and
investment, and job creation that freeports are expected to
deliver, we cannot truly measure their effectiveness.
“There is also considerable uncertainty about the financial
benefits of freeports in light of the recent G7 agreement to
clamp down on tax avoidance by global corporations. The
Government needs to explain the impact this will have on
freeports. If they haven’t thought this through, they may be in
danger of sinking their own flagship trade policy before it’s
even set sail.”
- ENDS -
Further information:
UK Freeports Report
- The Committee took evidence for its inquiry on ‘UK freeports’
between July 2020 and February 2021.
- You can read the press release and the Committee’s Report
here.
