One of UK's five new freeports 'must be in Scotland', say business leaders

One of UK’s five new freeports ‘must be in Scotland’, say business leaders

Posted by Admin October 27, 2024 Bussiness

One of the UK’s five proposed new freeports “must be in Scotland”, say business leaders ahead of the Chancellor’s Budget announcement.

Rachel Reeves is expected to announce five further freeports across the UK, as part of her budget on Wednesday.

It is understood they will be spread across the country, not just in England.

Sites at the Cromarty Firth and the Forth were awarded “green freeport” status last year, with Glasgow, Aberdeen and Orkney losing out.

Scottish business leaders have welcomed the announcement of more across the UK, but have called on the Chancellor to ensure “at least one” is in Scotland.

STV News

Dr Liz Cameron CBE, Chief Executive of the Scottish Chambers of Commerce, said: “The Scottish Chambers of Commerce has long called for ambitious investment projects to help drive growth and we welcome the announcement of five new Freeports across the UK.

“It is critical, however, that the UK and Scottish governments work in partnership to ensure Scotland benefits from the business opportunities and jobs they will bring.

“It was disappointing for bids from Clyde Port and the North East to miss out last time.

“Therefore, at least one of the locations must be north of the border otherwise we will not only lose out on the benefits but also face subsidised business competition within the UK.

“The plans must build on the recently agreed ‘green freeports’ and provide a platform for the regeneration and investment of other areas in Scotland.”

Scottish Secretary Ian Murray MP told STV News he did not know the details of the Chancellor’s announcement, but insisted the budget would benefit “all parts of the UK”.

He said: “The two (freeports) in Scotland so far have been successful, we want to encourage local growth.

“Economic growth has got to be in all parts of the UK – not just the South-East of England. The Budget will make that clear on Wednesday, it will be growth for all.”

What are freeports?

Freeports are special economic zones designed to boost investment in particular areas.

Businesses within the zone benefit from incentives, including on tax.

Freeports have reportedly attracted £2.9bn of investment, creating an estimated 6,000 jobs.

Prime Minister Sir Keir Starmer did however say he wanted to “make some tweaks” to ensure freeports did bring new investment to UK regions, rather than just move existing money around.

Bosses at Inverness and Cromarty Firth green freeport, which was one of two areas awarded its status at the start of last year, say they have already seen around £775m of investment confirmed.

10,000 jobs are expected to be created locally in the coming decades.

“It’s been transformative in many ways,” said CEO Calum MacPherson. “We’re already seeing the benefit in the area in terms of investment coming through.

“Although it’s been a long time coming, there’s no doubt that having green freeport status was a critical point to some of those investments – people making those decisions have said so.

“For us, it’s been a really positive thing.”