Time to greenlight Scottish green ports selection

Head of energy at Womble Bond Dickinson Richard Cockburn highlights concerns that English plans could leave nation behind

My firm has launched a Freeports business sentiment 2021 report, representing the views of more than 500 UK businesses, from a range of sectors and turnover size.

As expected, the number of respondents based in Scotland was low, but for those impacted by Freeports in England, the sentiment was positive, but met with concern over the lack of progress in Scotland.

Results revealed there is concern that England’s Freeports plans could create an uneven playing field and businesses are urging

Holyrood to reach agreement swiftly with the UK Government to launch the Scottish green ports selection process quickly.

Our report shows widespread optimism among English businesses and organisations – 69 per cent of respondents said Freeports should help to attract overseas investment and 46 per cent also agreed that Freeports will enhance trade to and from the UK.

There is optimism around skills and jobs too – 52 per cent of those

already based within a planned free zone said they intend to create new skilled jobs in the next two years.

But that English optimism is not reflected in Scotland. Scottish ports continue to voice concern that they may be missing out to Freeports in other parts of the UK as a result of the continuing delay in the Scottish green ports selection process, which was expected earlier this year from the Scottish Government.

Since the English Freeports announcement, at least £95 million of investment in offshore wind port upgrades have been announced at Teesside and Humber and it is this type of investment opportunities Scottish ports fear that they are losing out on.

Developments continue apace at Scottish ports, but the longer the delay in the selection process for Scottish green ports, the greater the chance that inward investments will be lost.

Our Freeport report underlined the potential for Scotland, though. A large proportion of businesses in Freeports and free zones expect to create more skilled roles in the next 12-24 months. This is a great indicator that Freeports will bring the benefits they promise and help to build opportunities in surrounding areas.

Businesses clearly feel the Freeports initiative has the potential to drive regional regeneration and recovery. However, most importantly, the survey emphasises that Freeports will not drive success in isolation.

Freeports will not be the answer for every business but – used as one tool in the economic toolkit – the benefits could be significant if all plans are realised, and that’s a really exciting opportunity if we are able to put the same mechanisms in place in Scotland.