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Government publishes Freeports roadmap
[ January 15, 2024 // Chris Lewis ]The Department for Levelling Up published a delivery roadmap for Freeports on 19 December. It aims to create investable sites – bringing sites and enabling infrastructure forward, to promote Freeports and create clusters of economic growth, capitalising on early investment to attract a wider supply chain.
While the measures have been developed in response to the opportunities and challenges faced by English Freeports as they have progressed through delivery they will apply UK-wide and the Department will work with the Scottish and Welsh Governments and their respective agencies, to ensure appropriate support is available for Green Freeports in Scotland, for Freeports in Wales. The UK government will also continue to work with stakeholders on how best to deliver the benefits of the Freeports and Investment Zones programmes in Northern Ireland.
The aim is to bring forward dormant sites at freeports for rapid development, including major projects in nascent sectors. These are complex undertakings with long lead times and the government says it wants to do all it can to accelerate enabling processes, including planning consenting and infrastructure delivery.
This may include remediating contaminated land, upgrading transport links, or demolishing old and unwanted structures. Where the cost of these works, or the risks associated with them, are so great that it is unrealistic to expect the private sector alone to meet them, the government will provide support.
The Department for Transport will therefore ensure the needs of Freeports are considered in transport funding.
Where Freeport sites require significant up-front enabling works, the UK Infrastructure Bank will provide advisory support and explore options for flexible loans to Freeport local authorities and debt, equity, and government backed guarantees to private sector partners for eligible projects.
Waiting times for electricity grid connectivity can be a source of delays for the delivery of Freeport sites and the government is working closely with Ofgem and network companies to ensure sufficient network capacity and accelerate grid connections:
The government will also ensure that national planning policy reflects the needs and priority of Freeports and Investment Zones. Any Freeport or Investment Zone project that is deemed to be a Nationally Significant Infrastructure Project (NSIP) will also benefit from a reformed consenting process from Spring 2024, including a fast-track route for seeking Development Consent, subject to meeting the required quality standards.
In the Autumn Statement, the government announced that the window for claiming Freeport tax reliefs will be extended by five years, giving businesses the long-term certainty to invest, especially in complex projects.
It is also creating a £150 million fund to support Freeports and Investment Zones across the UK.
The government says it will promote Freeports and Investment Zones to potential inward investors.
The Department for Education will establish links between key partners to strengthen the skills offer available to freeports, including sharing best practice and lessons learnt. It will champion joint with local colleges to support the creation of a pipeline of highly skilled local workers and will work to join up government skills initiatives and promote and improve enrolment in apprenticeships and other relevant skills routes.
The government aims to establish Freeports and Investment Zones as innovation clusters
It also aims to place Freeports at the forefront of border innovation and the ambition, articulated in the 2025 UK Border Strategy, including establishing the Freeports Border Innovation Forum, which will bring border, trade, and customs policymakers together to consider opportunities to supplement the existing Freeports customs offer with new technologies and innovations.
Offshore wind is a key sector for a number of Freeports and is expected to play a major role in the UK’s transition to a Net Zero economy. The government will continue to engage with the ports sector to develop a shared understanding of the barriers to offshore wind investment and identify potential solutions to overcome them.
Freeport East said it welcomed publication of the Roadmap. Chief executive Steve Beel, said: “The new commitments in the roadmap come at an important time for us. As our progress with inward investment continues, we are keen to ensure we see the wider changes needed to maximise the full potential of Freeport East.
“Our work to secure more investment in our local grid capacity, our push to secure the delivery of strategic infrastructure investments, such as rail enhancements at Ely Junction, and our vitally important skills agenda, are just some of the examples where the roadmap will give us greater opportunity to deliver for our local area. As well as strengthening our reputation as an inward investment destination, these initiatives will directly benefit our local communities.”
Freeport East says it has already attracted significant interest, with a £200m facility for the Range at Gateway 14 now completed and Scottish Power planning the development of a multi-hundred MW, £150m green hydrogen production facility at the Port of Felixstowe.
Tags: Department for Levelling up; Freeport East