By Andrew Topping, Local Democracy Reporter
The Government has approved plans to give East Midlands Freeport businesses “special” tax incentives in the biggest indication to date the major development will go ahead.
The green light means eligible companies investing in designated ‘freeport’ areas will be able to access a range of tax-cutting benefits from March 22, 2022.
A ‘freeport’ is a low or zero-tax area, allowing businesses to import and export while avoiding tariffs and reducing red tape – permitting they operate within the boundaries of three key hubs.
These areas, known as ‘tax sites’, cover the freeport’s planned bases at East Midlands Airport, the East Midlands Intermodal Park in Derbyshire, and the Ratcliffe-on-Soar power station.
The East Midlands Freeport Board has confirmed the announcement means special tax measures will be offered to companies whose development plans support the freeport’s main objectives.
These include growth in advanced manufacturing and logistics and “turbocharging” net-zero targets.
It is hoped the benefits will attract new “high-value, low-carbon” investments, with the latest estimates suggesting about 61,000 jobs could be created off the back of the project – including about 29,000 directly at the three sites.
Members of the freeport board, made up of key council partners and stakeholders, are in the process of finalising the full business case to submit to the Government.
This has been given cross-party backing by both Labour and Conservative MPs and is expected to be submitted within the coming weeks.
But now the Government has approved the three sites for future tax-cutting measures, indicating the full freeport bid’s success is “almost inevitable”.
The full business case will address elements of custom measures and plans directly for the three sites, with expectations this will be reviewed and approved “in the next couple of months”.
Councillor Ben Bradley MP (Con), leader of Nottinghamshire County Council and Mansfield’s MP, has been a vocal supporter of the freeport and welcomed the latest development.
But he said it’s not yet time to “pop the champagne corks and celebrate the approval of the whole thing”.
He told the Local Democracy Reporting Service: “We’ve got to submit the final business case and get approval for the other part, which is the customs element, but we’re ticking those boxes now.
“In the next couple of months, we should have all of that over the line – which means the freeport will be fully up and running.
“It will create these 61,000 jobs both on-site and around the county within the supply chain, so it’s really good news, it’s a huge step towards where we want to get to.”
The East Midlands is among 10 areas nationally bidding for freeport status, but the region will benefit from being the only inland site.
The board says this will help to “power up” the region’s economy to the tune of £8.9 billion over the freeport’s lifetime.
Jobs touted for the three sites would boost industries including manufacturing, construction, distribution, logistics, transport, clean energy and aviation.
And the Ratcliffe-on-Soar power station site is planned to become a “hub for clean energy” once it is decommissioned later this decade.
But opposition leaders have raised some concerns about the freeport in recent weeks – including a “lack of detail” being made public by the board.
It followed the full business case being discussed and debated by the county council’s policy committee last month, despite many elements of the bid being exempt.
Speaking after the meeting on February 10, Cllr Kate Foale, leader of the Labour Group, told the Local Democracy Reporting Service: “We are pro-jobs, pro-investment, and pro-business growth in Nottinghamshire.
“The Labour Group expects, given the lack of detail, that more will need to be discussed and decided upon regarding the freeport issue in future, as significant sections of the proposal aren’t resolved.”
And the Independent Alliance has previously raised concerns about “people displacement” arising from the new freeport sites.
