Teesside Freeport open for business
- Teesside Freeport will be at the forefront of the local low-carbon sector, creating thousands of jobs in green energy
- The freeport estimated it will create more than 18,000 jobs and provide a £ 3.2bn boost to local communities
- Seven free ports to follow in England, including Thames and Humber in due course
Teesside Freeport began operations today (November 19, 2021) placing the region at the forefront of green energy, manufacturing and innovation.
It is estimated that the Freeport will create over 18,000 new highly skilled jobs and generate £ 3.2 billion for the local community over 5 years (1). It will have access to a share of £ 200million of government funding to support the region’s upgrade ambitions and become the UK’s clean energy powerhouse.
Close to the North Sea, Teesside is ideally placed to serve the offshore wind sector and with its excellent transport links, it will be a gateway to global markets by air, sea, rail and road.
The Freeport has already secured a multi-million pound investment from GE Renewables to build a new offshore wind blade manufacturing plant that they say will create up to 750 manufacturing jobs and 1,500 other roles in the production chain. ‘supply.
These blades will power the world’s largest offshore wind farm, Dogger Bank, helping to power millions of UK homes, and the government has also committed an additional £ 20million to create a new deep water quay to serve the wind industry. offshore.
Up to 3 other offshore windmakers could be hosted at the site, bolstering the UK’s offshore and net zero ambitions, and creating thousands of jobs for locals.
The next 2 free ports to become operational will be Thames and Humber. Both have had designated tax sites today and are working at a steady pace to become operational in the near future.
Upgrade Minister Neil O’Brien said:
I am delighted to see Teesside Freeport start operations today, putting the region at the forefront of the UK’s campaign towards net zero and creating thousands of highly skilled jobs in the region.
Freeports will help generate prosperity and increase opportunities by stimulating trade and innovation as we move forward in all corners of the UK.
We are already seeing proof of this in Teesside with GE Renewable Energy’s multi-million pound investment as they bring their new blade manufacturing plant to the site.
Lord Frost, Minister of State at the Cabinet Office, said:
After leaving the European Union, we now have the freedom to do things differently, including creating new free ports to boost our trade with the world’s fastest growing markets.
Today’s announcement is great news for Teesside and it shows that we are maximizing the opportunities of Brexit to create well-paying jobs and boost growth across the UK.
In addition to more free ports, we want to go further and faster to create a competitive regulatory environment that supports innovation and stimulates foreign investment.
Tees Valley Mayor Ben Houchen said:
The day has finally come – after years of campaigning and shouting about the transformational potential of a Freeport for Teesside, Darlington and Hartlepool, we are finally open for business.
We are opening our doors to the world, showing companies that we are a truly outward-looking international region, ready to welcome the cutting-edge sectors of tomorrow. We are already reaping the benefits of Teesside Freeport with people like GE creating thousands of good quality, well paying jobs for local workers.
As we lead the UK into the cleaner, safer and healthier industries and jobs of tomorrow, the sky is the limit on what Teesside Freeport can achieve.
Councilor Shane Moore, Head of Hartlepool Borough Council, said:
The sea and our harbors have shaped Hartlepool’s fortunes for hundreds of years and it is absolutely fantastic news that Teesside Freeport has started operations today.
I have been delighted to play my own role in ensuring that the Port of Hartlepool and the Port of Able Seaton are included in the offer and believe that the status of Freeport will help harness the power of the workforce. highly skilled work from the Tees Valley and our established and emerging industry clusters.
We continue to work with other free ports to ensure they reach this important milestone as soon as they can. Other successful potential freeport locations include:
- East Midlands Airport
- Felixstowe and Harwich
- Liverpool City Area
- Plymouth and South Devon
(1) Source: https://teesvalley-ca.gov.uk/teesside-freeport/
Free ports are special areas within UK borders where different economic regulations apply. Free ports in England are centered around one or more air, rail or sea ports, but can extend up to 45 km beyond the port (s). See more information on Freeports.
Covering 4,500 acres, Teesside estimates it will create more than 18,000 new jobs.
The Freeport will also facilitate the establishment of a highly skilled and world-class workforce specializing in manufacturing, engineering and offshore industries, supported by the new Teesworks Academy.
During the budget, in March 2021, the Chancellor announced 8 potential free port locations in England, selected following the fair, open and review process outlined in the tender prospectus.
The locations selected to proceed to the next designation stages are: East Midlands Airport, Felixstowe & Harwich (known as Freeport East), Humber, Liverpool City Region, Plymouth & South Devon, Solent, Teesside and Thames.
Subject to the business case assessment, they will be able to access a share of £ 200million of seed capital funding.
During Budget in October 2021, the Chancellor announced that the first tax sites will be in Humber, Tees and Thames. Thames and Humber tax websites go live today (November 19, 2021).
Eligible businesses that locate in tax sites in these free ports may benefit from several tax incentives, including: an improved capital deduction; an allowance for structures and buildings; lower business rates; and land tax relief on stamp duties.
Teesside also designated a customs site today (November 19), which means that businesses that set up shop at the site can benefit from customs facilities, including tariff suspension, exemption and deferral.
The government is working hard to support other potential free ports. Subject to the acceptance of their governance agreements and the success of their business cases, we expect the next round of free ports to begin operations starting in 2022.
The UK government remains committed to establishing its Freeport program in Scotland, Wales and Northern Ireland as soon as possible and is confident that our model meets the highest employment and environmental standards.
Local authorities will be able to retain 100% of the growth in activity rates generated by the free port tax sites for the next 25 years, offering them financial security to invest in the regeneration of their local area.