Harwich & Felixstowe freeport status confirmed in the Budget
The joint bid has been a success, along with seven other sites
Last updated 4th Mar 2021
The chancellor has confirmed ports in Harwich and Felixstowe have been granted Freeport status.
Rishi Sunak's made the announcement for Freeport East as part of his Budget this afternoon.
What is a Freeport?
Freeports allow business to be carried out inside a country's land border but where different customs rules apply.
Rishi Sunak argues it will help boost manufacturing in areas that have lost their old economies, but some critics argue it does little to boost jobs.
In his budget statement, Mr. Sunak said freeports are "special economic zones with different rules to make it easier and cheaper to do business''.
He's promised they would come with simpler planning, cheaper customs- with favourable tariffs, VAT or duties- and lower taxes, with "tax breaks to encourage construction, private investment and job creation''.
The freeport means companies can import goods tariff-free and only pay once it is sold into the UK
They can also export the final goods without paying UK tariffs.
But the UK Trade Policy Observatory says freeports do not "guarantee" regeneration and says their success often depends on design.
They also warn that the special zones do little to create "new" economic activity, instead driving in business from other regions.
One of the benefits Freeport East is predicting is the "turbo-charge" of offshore wind investment in the area.
The news is being welcomed by locals.
Commenting on the plan, George Kieffer, Chairman of the Freeport East Project Board, said:
“Green energy is at the heart of the Freeport East proposition. The development of the Hydrogen Hub, and the involvement of serious partners in Ryse-Hydrogen and EDF, shows that ours is a proposal backed by real substance.
"By creating a hotbed for green energy innovation Freeport East will create high-value jobs helping drive regeneration both locally and nationally.”
Julia Pyke, Director at Sizewell C, said:
“Using reliable nuclear power from Sizewell B and C alongside renewables, Freeport East has the potential to host one of the most exciting ‘green’ hydrogen schemes in the UK.
"Suffolk has great opportunities to benefit from the combination of its nuclear and renewables industry, its ports, and the construction of Sizewell C using hydrogen vehicles wherever possible, to build a hydrogen economy and be at the forefront of this exciting development.”
Freeport East is "optimistic" it will create opportunities for local people in the next "12 to 18 months" and provide a well needed boost to coastal area.
Mr Kieffer added:
"Coastal areas suffer from significant levels of deprivation and this is a way of catalysing them, spurring them on to start generating prosperity for local people.
"We are already working with local education providers, further education colleges, to make sure the future employees have the skills required.
"It's brilliant news but the hard work really starts now."