No new freeports in Budget despite No 10 announcing five more would be built
Rachel Reeves will not announce any new freeports in the Budget, despite a Downing Street press release on Friday saying five more would be unveiled, it is understood.
The Chancellor will instead confirm funding for “next steps” for five of the existing sites, which will receive official clearance to have custom zones within their boundaries.
Ms Reeves will also approve plans for a separate “investment zone” in the East Midlands that were put forward by the previous Tory government.
‘Cock-up’
The Financial Times, which broke the story, quoted one official as having said the announcement had been a “total cock-up with the comms”.
Government sources said the error had arisen over the distinction between customs sites and freeports.
Some seven of the UK’s 12 freeports have a number of customs zones that allow them certain benefits, such as only paying tariffs on finished products when they are placed on the market and receiving tax breaks on hiring new staff.
A further five will receive clearance to have such facilities open within their boundaries under the Labour Government’s plans, it is understood.
Downing Street declined to comment.
‘Foundations’
On Friday, Number 10 said: “Ahead of the first Labour Budget in 15 years, the Prime Minister has today confirmed that the Chancellor will announce a new investment zone in the East Midlands and five new freeports as part of the government’s package of measures to fix the foundations and rebuild the country.”
During his visit to Samoa, Sir Keir Starmer was asked about the commitment and whether “announcing in the Budget five new freeports” was an acknowledgement that the Conservative approach had been successful.
The Prime Minister replied: “Freeports were introduced by the last government, and what we did was to look at them. I didn’t want to take the sort of ideological view that just because they were introduced by the last government, we would sort of stand them down.
“We looked at them, they are working well, I think they can work better. So rather than stand them down, we’re going to go with it, but we’re going to make some improvements so they work even better.”
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When he says “they are working well” does he mean that they are successfully transferring wealth to the cofffers of international finance, that being the fundamental desire of all neoliberals?
The two freeports forced on Wales by the Tories even though ports & taxis are devolved matter will not benefit those Wales. Less we forget, Cardiff had a freeport and it was later scrapped deemed an abject failure in 2012 by David Cameron, and I quote: ” Were a significant drain on the tax system, and it was admitted that there was no advantage with freeports over others in the world”. Enough said. And don’t forget. We were still part of Europe at the time and our two main ports of Holyhead & Fishguard were busy with Irish hauliers and… Read more »
The answer is to take the cash and make sure whatever it’s spent on has a dual purpose so remains useful once the freeport circus has moved on.