In a recent interview regarding the upcoming Budget, Chancellor Rachel Reeves clarified that there will be no announcement of new freeports on Wednesday, despite a government announcement made the previous Friday that implied otherwise. We asked about the confusion surrounding this topic.
“Can you elaborate on what led to this miscommunication regarding freeports?”
“A government official confirmed to the BBC that there was indeed a misunderstanding related to the freeport sites and the multiple customs areas within them. This resulted in what some referred to as a ‘cock-up’ with the communications,” Reeves explained.
She noted that rather than introducing five new freeports, the Budget will focus on operationalizing plans and funding for existing designated freeport sites.
“Can you specify what changes we can expect for the current freeports?” we inquired.
Reeves indicated that while the current freeports, which include locations around Inverness, the Forth, Teesside, the Humber, Liverpool, and others, play a vital role in facilitating trade by being tariff-free zones, not all of them are currently operational. This is primarily due to the absence of designated tax and customs sites.
“So, what can businesses in these areas anticipate?” we asked.
She will confirm the addition of five new customs sites within existing freeports, which include new designations for sites in Inverness and the Humber. The Humber site will officially become operational as a freeport, making it eligible for tax reliefs and funding, while the Inverness site awaits final approval. Additionally, three new customs sites will be introduced in Liverpool, complementing the three already established there.
“Will there be any other initiatives rolled out in the Budget?” we pressed.
In addition to the freeport developments, Reeves plans to unveil a separate investment zone in the East Midlands, which was also alluded to in the previous announcement.
A representative from the Financial Times, who initially reported the confusion, mentioned that Friday’s announcement — which occurred while the Prime Minister was at the Commonwealth Heads of Government summit in Samoa — left many involved in the freeport discussions puzzled, as there had been no prior indication of such plans.
In conclusion, the Chancellor’s clarification appears to settle a swirl of speculation surrounding the freeport initiative, reflecting an ongoing commitment to enhancing economic activity and investment in key regions.
