Developing underdeveloped regions is a key priority for the UK government. One strategy they have implemented to achieve this is to set up Freeports and Investment Zones.
These are designated areas offering unique incentives designed to boost trade, fuel economic growth, and attract investors. In this newsletter, we take a closer look at Freeports and Investment zones in the UK and explore their benefits.
What Are Freeports and Investment Zones?
Freeports are generally located around airports or shipping ports. They are special economic zones designed to reduce costs and offer tax incentives. To encourage trade and attract investment, Freeports also have simplified customs procedures.
The focus of Investment Zones is to support businesses in underdeveloped areas, creating jobs and driving economic growth. Businesses in these designated zones can take advantage of generous tax cuts and more lenient planning regulations.
What Are the Key Advantages of Freeports and Investment Zones?
Freeports and Investment Zones are designed to make investing in these areas highly appealing. Some of the key benefits include:
- Tax incentives: Businesses operating in these zones benefit from lower stamp duty, lower Employer National Insurance contributions, and reduced business rates.
- Customs efficiency: Freeports are particularly advantageous for international traders. Goods can be imported and exported without the usual tariffs or customs duties.
- Lenient planning regulations: Relaxed planning rules in Investment Zones mean that business operations can be established or expanded with ease.
- Boosting regional economies: Freeports and Investment Zones attract Foreign Direct Investment (FDI) and create thousands of jobs.
Where Can Freeports and Investment Zones be Found?
There are already several established Freeports and Investment Zones across the UK. Some notable examples include:
- Teesside Freeport (Northeast England): This is the largest freeport in the UK, specialising in chemicals and materials processing, renewable energy and offshore wind.
- East Midlands Freeport: Strategically positioned near East Midlands Airport, this zone is a hub for advanced manufacturing.
- Thames Freeport: Located on the banks of the River Thames, this Freeport supports green energy initiatives and logistics.
- Humber Freeport: Situated in Northeast England, this Freeport prioritises renewable energy and manufacturing.
- Plymouth and South Devon Freeport: This area is renowned for supporting marine innovation and sustainable development.
- Liverpool City Region: A strategic location for maritime and logistics industries.
- Solent Freeport: Based in the South Coast of England, this Freeport supports the maritime and aerospace sectors.
Notable Investment Zones include the West Midlands, Greater Manchester, South Yorkshire, Glasgow City and Northeast Scotland.
Businesses That Have Already Taken Advantage
Several reputable companies have already set up in Freeports and Investment Zones:
- GE Renewable Energy has created hundreds of jobs with its blade manufacturing plant in Teesside Freeport.
- DP World is expanding operations in Thames Freeport, focusing on logistics.
- Siemens Gamesa produces wind turbine components in the Humber region.
Future investors can take advantage of the tax incentives and simplified customs regulations that these zones offer. Freeports and Investment zones provide an ideal environment to foster growth and enhance competitiveness in key industries.
How 3CS Can Help
Our experienced team of property and commercial solicitors are knowledgeable in the regulatory framework surrounding Freeports and Investment Zones. We can help ensure your business takes full advantage of the incentives offered by these locations.
Don’t hesitate to contact 3CS today to discuss your requirements in more detail.
