LAW
Peter Snaith is a partner at Womble Bond Dickinson (UK) LLP,
manufacturing sector head and head of the firm’s Teesside practice.
Here he examines the merits of a freeport for Teesside.
What benefits could a
freeport bring for Teesside?
The government’s plans to create
up to ten freeports to boost trade,
jobs and investment across the UK
are attracting increasing attention.
The heightened focus on freeports or
free trade zones is driven by a range of
factors, not least the role these zones can
play in levelling up the UK economy and
the mitigating effect they could have on
the impact of the basis on which we leave
the EU.
From a practical perspective, the
government’s consultation process
has driven activity, providing a great
opportunity for businesses, local
government and trade bodies to feed in
comments and concerns surrounding the
freeport proposals.
Critics of the concept will say we had
free zones in the UK before and they
didn’t achieve their objective, fearing
abuse by the super-rich, who use them
to hoard assets, or that the zones will
become a haven for smuggling and
avoiding tax.
Sceptics will be concerned the zones
will encourage already strong businesses
to relocate into them, rather than attract
genuine inward investment.
However, it is wrong to focus heavily
on such concerns. They have been
anticipated in the government’s model and
the regulations that will govern the zones
will be designed to curb these issues.
Free zones under the government’s
proposed model are not like those we have
seen before. The framework has been
shaped by a Freeports Advisory Panel,
which includes the Tees Valley mayor
Ben Houchen amongst its members. The
model draws on evidence from successful
freeports around the world.
The blueprint includes customs areas
within which declaration processes
for inbound and outbound goods can
be streamlined and protection can be
obtained from the financial impact of tariffs
which may be imposed when we leave the
EU Customs area. Securing such benefits
could be crucial to the future viability of
many of our world class manufacturing
operations on Teesside and their business
cases for future investment.
Customs zones will be combined with
Special Economic Zones within which tax
incentives, planning and other regulatory
flexibilities will be designed to encourage
businesses to open, expand and invest in
the zone. Through a combination of these
measures, the government’s objectives
are to create hubs for global trade and
investment, promote regeneration and job
An aerial view of the former SSI
steelworks in Redcar that could be
part of a freeport in the region.
creation and create hotbeds for innovation.
Whilst the bidding process will be
competitive, Teesside has a very strong
case when measured against all of the
relevant objectives and criteria, which goes
far beyond the compelling fact that we
are home to the third largest port in the
country.
We can show that the economic
potential for the region is huge. The
possibilities for regeneration and job
creation in some of our deprived areas
are clear. The scope for local industry and
academia to pioneer new technologies to
support the green economy and enhance
productivity cannot be questioned.
Added to that, with our strong local
leadership and propensity for collaboration
between public and private sectors
that is evidenced through the mayor’s
commitment to securing a freeport, as Ben
himself suggests, it may be ours to lose.
The timescale for the bid process is still
to be confirmed. When the application for
Teesside goes in, it is vital the submission
represents a unified proposal that supports
the best interests of our region as a whole.
To find out how Womble, Bond, Dickinson’s legal team can assist and
grow with you on Teesside, please contact Peter on 0345 415 0000 or
email [email protected]
Womble Bond Dickinson’s dedicated national manufacturing sector team is one of the largest in the UK, with specialists with years
of experience of supporting clients with regulatory challenges, compliance matters, day-to-day contracts and strategic projects.
The voice of business in the Tees region | 35