Tees Valley Mayor Ben Houchen has made a renewed call for the creation of a Freeport for Teesside following the launch of a government consultation into the reduced-tariff zones.
A Freeport is a special zone, outside of the UK custom border, which incentivises business investment through competitive tax rates and simplified ways of doing business.
The government is aiming to create up to ten Freeports in locations across the UK, which will all have different customs rules compared to the rest of the country. The purpose of a Freeport is to boost global trade, attract inward investment, promote regeneration and innovation, and increase productivity.
The locations of the new zones will be announced at the end of this year so they can be open for business in 2021. A Freeport in Teesside could create 32,000 jobs over the next 25 years.
Mayor Houchen has played a pivotal role in the Government implementing a Freeport policy, including lobbying Whitehall, inviting ministers to the area and publishing a White Paper setting out how these new low-tax zones would work in the UK.
Last year, International Trade Secretary Liz Truss used a visit to Teesport to announce the Government would establish Freeports following Britain’s departure from the European Union.
During the visit, she said Teesport was “ahead of the game” to become one of the accepted bids and there was a “huge appetite” for the concept on Teesside.
Mayor Houchen said: “Since I began campaigning for a Teesside Freeport two years ago, support for it has grown and grown. A network of Freeports across the UK would be a powerful symbol that Brexit Britain is open for business in a way that hasn’t been seen for decades.
“Throughout the recent General Election, the Prime Minister rightly highlighted the benefits of a Freeport to voters in the North-East. Therefore I am delighted that the consultation has been launched and the Government is committed to introducing these low tax zones, which will be of huge benefit to businesses across Teesside, Darlington and Hartlepool.
“A Freeport on the Tees or at the South Tees Development Corporation site will result in a hive of activity, enterprise and innovation right across our region, and could see the creation of more than 32,000 jobs over the next 25 years.
“The government has already said we are at the front of the queue, and the launch of this consultation means we are one step closer to the Freeport vision becoming a reality.
“Teesside has played a crucial role in this nation’s historic trading past, and it must be key to our great trading future now we have left the European Union.”
