Humber freeport bid is ‘strongest’

TRADE: The Government has revealed that the Humber’s bid for a low tax ‘freeport’ was the strongest it received as it set out why a similar proposal for South Yorkshire failed to make the cut.

A ‘decision-making note’ showed that the bid for the new status for a 45km area was the only bid given the top score in all five categories.

THE GOVERNMENT has revealed that the Humber’s bid for a low tax ‘freeport’ was the strongest it received as it set out why a similar proposal for South Yorkshire failed to make the cut.

A ‘decision-making note’ published by the Ministry of Housing, Communities and Local Government showed that the bid for the new status for a 45km area taking in the ports of Hull, Grimsby, Immingham and Goole was the only bid given the top score in all five categories.

The bid by South Yorkshire, which was not one of the eight chosen in England, got the top score in two categories and rated ‘medium’ in three other areas.

But the Government document said it limited the number of freeports to one in each English region, as well as at least one in each of Scotland, Wales, and Northern Ireland, to “ensure a strong geographic spread”.

It added: “The Government have always been clear that the number of Freeports must ultimately be limited to control costs and maximise agglomeration benefits.

“The Chancellor judged that there was insufficient justification for creating additional freeports beyond an 8th in England at this time, given wider fiscal pressures on the Government as a result of the Covid-19 pandemic.”

Last week, political leaders in South Yorkshire complained that their freeport bid was turned down despite it scoring higher across many categories – including the regeneration category most closely linked to levelling up – than many of the successful bids.

They claimed the way funding was distributed showed the Government’s ‘levelling up’ promises were a “hollow façade, driven by politics and expediency rather than any serious attempt to address the deep seated challenges facing the parts of the UK most in need of support”.

It comes amid criticism of the way the Government has prioritised funding for various funds to support its levelling-up agenda, with some accusing Ministers of favouring Conservative-held or marginal areas.

Freeports are special economic zones with different rules to make it easier and cheaper to do business. They include infrastructure planning, customs and favourable duties and taxes.

According to the published assessment, the five criteria for deciding where a freeport should go were ‘trade and investment’, ‘regeneration’, ‘innovation’, ‘deliverability of proposals at pace’ and ‘private sector involvement’.

In total 18 bids were received and 14 went on for further assessment from a “cross-government group of senior officials forming the Freeports Programme Board”, with each awarded a score of high, medium or low against in the five areas.

Thirteen were then sent on for Chancellor Rishi Sunak and Communities Secretary Robert Jenrick to decide which areas should be chosen alongside senior civil servants. Mr Sunak declared the fact that he was MP for an area bordering Teesside, one of the successful areas, prior to decision-making.

Hollow façade, driven by politics and expediency. Verdict by leaders in South Yorkshire on the Government’s ‘levelling-up’ promises.