Government publishes action plan to accelerate growth in port towns and cities

Friday, 22 December 2023 13:28

Over 50 measures including £150 million fund will boost successful Freeports policy, along with special tax incentives extended to 2031 New strategic roadmap will help key port areas build on Freeports’ £2.9 billion investment and creation of 6,000 jobs Plans will be implemented to set timeframes, ensuring timely action to benefit local people in port communities The government has set out a new roadmap to further accelerate much-needed trade and...Request free trial

Over 50 measures including £150 million fund will boost successful Freeports policy, along with special tax incentives extended to 2031

New strategic roadmap will help key port areas build on Freeports’ £2.9 billion investment and creation of 6,000 jobs

Plans will be implemented to set timeframes, ensuring timely action to benefit local people in port communities

The government has set out a new roadmap to further accelerate much-needed trade and investment in key port areas across the country.

The successful Freeports policy introduced in 2021 is already empowering strategically located port communities to realise their economic potential – and in just two years, has attracted almost £3 billion of investment which will create over 6,000 jobs.

The new Freeports Delivery Roadmap will help Freeports to go even further by laying out an action plan of over 50 cross-government measures. These include:

A £150 million Investment Opportunities Fund to help Freeports and Investment Zones respond quickly to land large investment opportunities as they arise.
Extending the window to claim special tax reliefs in English Freeport sites from five years to ten – securing a whole decade of growth for port communities.

Minister for Levelling Up Jacob Young said:

“We are already seeing the vast and undeniable opportunities that Freeports are bringing, having brought in almost £3 billion of investment, which will create thousands of long-term jobs in sectors of the future.

“Our action plan in the Freeports Delivery Roadmap will maximise the potential of these communities to become centres of innovation and investment, with clear delivery timeframes to ensure rapid progress.

“Our goal is to improve lives for local people in areas historically overlooked and Freeports are helping us achieve that.”

The government is committed to taking the long-term decisions required to strengthen the economy, and Freeports are at the heart the government’s levelling up agenda, creating opportunities for everyone – from UK citizens and businesses to foreign investors - and providing vital local regeneration. There are currently twelve Freeports in Great Britain: eight in England, two in Wales and two in Scotland.

Other measures in the roadmap include:

Improving infrastructure: The UK Infrastructure Bank will work with Freeports to finance upgrades to infrastructure, including through flexible loans to local authorities and debt, equity or guarantees to private sector investors.
Skills and workforce access: Ensuring joint working between Freeports, Institutes of Technology and local colleges, and linking local jobseekers to opportunities at Freeports through Jobcentre Plus.
Investment promotion: Bringing government departments together to look at targeted interventions where Freeports face barriers to investment.
Programme delivery: Creating an independent advisory panel for Freeports, to increase the business voice within the programme.

The appeal of Freeports is becoming increasingly evident, having already unlocked significant investments including:

£175 million from Siemens Gamesa to expand its offshore wind blade manufacturing facility in Humber.
£150 million from ScottishPower to develop a project with Hutchison Ports exploring the development and construction of a multi-hundred MW green hydrogen production facility at Port of Felixstowe.
£130 million from Associated British Ports at the Port of Southampton, for a shore power project and terminal operating system in support of the automotive sector.

Some of the measures outlined in the Freeports Delivery Roadmap also apply to Investment Zones, which are boosting productivity and growth in areas in need of levelling up.

Together, Freeports and Investment Zones are forming a network of economic hotbeds across the country designed to stimulate private investment into high-potential places, providing more high-priority jobs for local people and levelling up the economy.

The UK Government will work with the devolved administrations to agree how the 10-year window to claim reliefs can be extended across Freeports in Scotland and Wales.

ENDS

Notes to editors:

Freeport locations:

England – East Midlands Freeport, Humber Freeport, Freeport East (Felixstowe & Harwich), Liverpool City Region Freeport, Plymouth and South Devon Freeport, Solent Freeport, Teesside Freeport, Thames Freeport
Scotland – Firth of Forth (Edinburgh) and Inverness and Cromarty Firth (Highlands), (also known as Scottish Green Freeports)
Wales – Celtic (Port Talbot and Milford Haven) and Anglesey

Please visit here to see the Freeports Delivery Roadmap published by the Department for Levelling Up, Housing and Communities.
The Secretary of State for Levelling Up, Housing and Communities Michael Gove also published a written statement - available here.
To read more about Freeports, please visit gov.uk: www.gov.uk/guidance/freeports

The government will now work at pace to implement the measures in the roadmap below, which has approximate delivery timescales:

Theme	Department/ Organisation	Commitment	Outcome	Delivery Timescales
Infrastructure	DfT	To consider how the benefits of Freeports can be maximised as relevant Network North schemes are progressed	Meeting transport needs	On a project-by-project basis
Infrastructure	DfT	To reflect Freeports in DfT business cases and funding decisions	Meeting transport needs	6 months
Infrastructure	UKIB	Provide Freeports with advisory expertise and support	Tackling financing gaps	3 months
Infrastructure	UKIB	Providing flexible loans to Freeport local authorities and debt, equity, or guarantees to private sector partners	Tackling financing gaps	As Freeports come forward
Infrastructure	UKIB	Identify investment options for offshore wind port infrastructure in Freeports	Tackling financing gaps	6 months
Infrastructure	DLUHC	Make centrally contracted expert advice available to Freeports to support them in engaging energy network stakeholders	Accelerated site delivery	Next 3 months
Infrastructure	DESNZ	Work with Ofgem to implement Regional Energy Strategic Planners	Accelerated site delivery	Next 6 months
Planning	DLUHC	Reflect Freeports and Investment Zones in the NPPF and other Policy Statements	Greater clarity for Local Planning Authorities	2024/25
Planning	DLUHC	Support large-scale Freeport sites through the planning Super Squad	Accelerated planning consents	From April 2024
Planning	DLUHC	Include relevant Freeport sites in the NSIP Fast-Track Scheme	Accelerated planning consents	From April 2024
Planning	DLUHC	Active engagement with National Statutory Consultees to identify issues and prioritise engagement	Accelerated planning consents	4 months
Planning	DfT	Include in relevant Transport National Development Management Policies and cover the need to plan for Freeports in updates to the NPPF, including updates to any associated Planning Practice Guidance around Ports and Transport	Greater clarity for Local Planning Authorities	2024/25
Planning	DfT	To ensure that government’s response to the call for evidence on Freight, Logistics, and the Planning system brings out appropriate linkages to Freeports policy	Greater clarity for Local Planning Authorities	2024/25
Planning	DfT	Review advice given to DfT Statutory Consultees and to ensure appropriate prioritisation	Accelerated planning consents	4 months
Planning	DEFRA (through ALBs)	Work with Freeports to understand their needs for expert advice	Accelerated planning consents	Next 6 months
Planning	DEFRA (through ALBs)	Support local planning authorities who are already signed up to the Coastal Concordat and promote its adoption with others	Accelerated planning consents	Next 12 months
Planning	DEFRA (through ALBs)	Provide early advice through cost recovered pre-application advice services	Accelerated planning consents	Ongoing
Planning	DEFRA (through ALBs)	ALBs to consider Freeport masterplans to inform where ALBs will provide advice, e.g., environmental evidence	Accelerated planning consents	Next 6-8 months
Planning	DEFRA (through ALBs)	Environment Agency and Natural England to prioritise engagement based on environmental risks and opportunities to provide focussed expertise and support	Accelerated planning consents	Ongoing
Planning	DEFRA (through ALBs)	Work with the Planning Advisory Service to support their programme of capability building with Freeport planners	Accelerated planning consents	Next 6 months
Planning	DCMS (through Historic England)	Freeports programme Service Level Agreement to ensure Historic England have the resources available to provide Freeports with the advice and services needed	Accelerated planning consents	Next 6-8 months
Funding and tax Incentives	HM Treasury	Extend the window for tax reliefs from 5 to 10years	Long-term support for businesses to invest	During 2024
Funding and tax Incentives	DLUHC	Introduce a new £150 million Investment Opportunities Fund for Freeports and Investment Zones	Increased investment into Freeports	2023/24-2026/27
Investment promotion	DBT	Expanded DBT Freeports and Investment Zones investment attraction functions and boosting the promotion of each at investor events	Enhanced investment attraction	3-6 months
Investment promotion	DBT	Adopt an objective for investor-facing teams relating to the promotion of Freeports and Investment Zones	Enhanced investment attraction	3 months
Investment promotion	DBT and DLUHC	Where sites face barriers to investment, convene across government to respond to those barriers in a targeted way	Tackling critical site delivery issues	3-6 months
Investment promotion	OfI	Promote the most investment-ready sites and provide end-to-end support to high-value investors	Enhanced investment attraction	3 months
Skills and Workforce Access	DfE	Place-based teams will meet with Freeport SROs and better position skills providers to respond	Improved delivery of Freeport skills programmes	Next 4 months
Skills and Workforce Access	DfE	Champion joint working between Freeports, Institutes of Technology and local colleges	Improved delivery of Freeport skills programmes	Next 6 months
Skills and Workforce Access	DfE	Ensure Freeport sites are considered for pilots, new skills initiatives or variations to existing ones	Improved delivery of Freeport skills programmes	Next 3 months onwards
Skills and Workforce Access	DfE	Encourage and increase take-up of skills initiatives and employer investment e.g., apprenticeships, bootcamps etc.	Improved delivery of Freeport skills programmes	Next 6 months onwards
Skills and Workforce Access	DfE	Broker engagement with Mayoral Combined Authorities (as a funder of skills provision) and ERBs	Improved delivery of Freeport skills programmes	Next 6 months
Skills and Workforce Access	DfE	Raise the profile of Freeports with relevant provider sector bodies	Improved delivery of Freeport skills programmes	Next 3 months
Skills and Workforce Access	DfE	National Careers Service Prime Contractors will work with Freeports to raise awareness of the opportunities available and help facilitate teach-ins for careers practitioners	Improved delivery of Freeport skills programmes	Next 6 months
Skills and Workforce Access	DWP	Link Jobcentre Plus with local Freeports to ensure vacancies that could be made available to local jobseekers are identified	Improved job opportunities for local people	Next 3 months
Skills and Workforce Access	DWP	Ensure Freeports form part of Job Centre Plus Work Coaches’ conversations with claimants	Improved job opportunities for local people	Next 3 months
Skills and Workforce Access	DWP	Utilise local Job Fairs, create bespoke Sector-Based Work Academy Programmes and use DWP’s Youth Hub Network	Improved job opportunities for local people	Next 6 months onwards
Innovation	DSIT	Confirm mechanism for ensuring the design and implementation of innovation policy and funding is cognisant of Freeports and Investment Zones	Supporting UK innovation clusters	Next 6-12 months
Innovation	DSIT	Explore how DSIT can best support Freeports and Investment Zones as part of future planning	Supporting UK innovation clusters	Next 6-12 months
Innovation	DSIT	Expand the FREN to support businesses within Investment Zones	Increased innovation and investment	Next 6 months
Innovation	DSIT and DBT	Widen the FREN’s scope beyond regulatory innovation and to encompass broader regulatory barriers to business investment	Increased innovation and investment	Next 6 months
Innovation	DSIT	Work with other government departments to explore, and develop a plan for implementing, pro-innovation regulatory tools, such as regulatory sandboxes, within Freeports and Investment Zones	Increased innovation and investment	Next 12 months, specific timelines subject to feasibility of options that may be potentially identified
Innovation	HMRC, CO, DSIT and DBT	Establish a Freeports Borders Innovation Forum	Increased innovation	Next 3 months
Decarbonisation	DESNZ	Will provide a direct point of contact for Freeport and Investment Zone enquiries relating to opportunities in the ports sector	Supporting Freeport sector opportunities	Ongoing
Decarbonisation	DESNZ	Ensure that investors into CCUS and the emerging low-carbon hydrogen economy are aware of the benefits of Freeports and Investment Zones	Increased investment into Freeports	Next 6 months
Decarbonisation	DESNZ	Ensure that the development and delivery of relevant Net Zero policies and funding programmes are cognisant of the opportunities of Freeports and Investment Zones	Supporting Freeport sector opportunities	Ongoing
Programme Delivery	DLUHC	Unify investor-facing messaging and branding across the Freeports and Investment Zone programmes	Increased investor clarity	Ongoing
Programme Delivery	DLUHC	Create an Independent Advisory Panel within the Freeport programme’s governance	Increased business voice within the programme	Next 4 months
Programme Delivery	DLUHC	Review monitoring and evaluation requirements on Freeports to ensure they are proportionate and coordinated	Reduced administrative pressures on Freeports	Next 4 months