Tag: Freeports

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North East Coalition files world-class Freeport bid

North East England Freeport to create 60,000 jobs, over £3.4bn GVA and £2.7bn private sector investment.

A dynamic business and public sector partnership based in the UK’s leading export region has lodged an exciting and innovative bid for the North East England Freeport, which economic experts have predicted would generate a £2.1 billion boost to UK exports, plus many other significant benefits.

Government support for the proposal would see the North East England Freeport provide a uniquely ambitious and collaborative opportunity for the whole region to thrive, boosting the local economy by over £2.4 billion over 10 years and providing a gateway to long term global competitiveness. Through the North East England Freeport, over 30,000 new jobs are expected to be created for the region, of which 13,000 are highly paid ‘better jobs. A further 31,000 jobs will be generated in the construction industries.

The regional consortium formed to operate the North East England Freeport as a virtual free trade zone includes Nissan, the Ports of Tyne, Blyth and Sunderland, Newcastle Airport, seven local and two combined authorities, the North East Local Enterprise Partnership (LEP), plus leading north east universities and innovative organisations. The sites involved will be inter-connected and secured using a state of the art, cybersecure perimeter.

Economic analysis completed by consortium members and validated by an independent economic adviser demonstrates that the North East England Freeport would deliver outstanding economic benefits to the region. These include:

  • 61,458 new jobs across the construction, manufacturing, logistics, energy, innovation and business sectors
  • £3.4 billion GVA across the local region
  • Expected GVA of £110,000 per freeport worker, with median earnings of freeport workers 40-62% higher than current regional levels across all sectors
  • Total GVA uplift of £3,000 per capita within the North East LEP area
  • £2.7 billion in new regional private sector investment
  • £2.1 billion additional UK exports over 10 years

By generating tens of thousands more and better jobs, the North East England Freeport will become a national hub for global trade and investment, a hotbed for innovation, a catalyst for sustainable economic regeneration, while minimising barriers to trade. Each site and partner in the freeport bid consortium will contribute to realising a best-in-class offering that will drive investment and deliver a high impact, economic boost that fully exploits the North East’s unique abilities in advanced manufacturing, life sciences, digital, clean energy and business services.

Crucially, the North East England Freeport will provide a bold blueprint for growth, compromising of a multi-site, digitally connected and enabled cybersecure boundary area, with robust customs zones. This will enable the North East region’s clusters to manufacture goods cost efficiently and trade internationally, benefiting from tax advantaged policy to stimulate economic development. It will contribute to levelling up in one of the areas of the country where it is needed the most.

The North East England Freeport will include three significant tax sites totalling approximately 600 hectares on which businesses will be able to receive a range of special incentives to invest and grow. They are located in some of the most deprived communities in the region and will create new jobs and supporting skills and employability programmes to ensure jobs are accessible to local people. The activity from these businesses will generate benefits across the region.

The Freeport will be led by a collaborative Governance Board which will bring together leaders from business, local government, higher education and the ports to drive forward the North East England Freeport at pace. This demonstrates the regions determination to deliver long term transformation and commitment to level up the UK economy.

Matt Beeton, CEO at the Port of Tyne and Interim Chair of the North East England Freeport, said: “Our model offers an unrivalled, ‘best of all worlds’ approach, uniting the private and public sectors to provide the region with an exceptional opportunity to benefit from the levelling up potential of digitally enabled economic zones. Developing over 60,000 new jobs in the region and £3.4bn regional GVA is incredibly important and demonstrates that ports are a catalyst for future economic growth.”

Martin Lawlor, CEO at the Port of Blyth said: “This bid consortium offers unrivalled clean growth and manufacturing expertise, and we have the vision, ambition and experience to make this a flagship freeport the UK can truly be proud of. We are excited by both the innovation within our bid and the transformative impact our freeport will have on the region if we are successful.”

Nick Jones, Chief Executive Officer of Newcastle International Airport, said: “Fast and frequent connections to growth markets are key to the success of the freeport and the advancement of the North East’s key business sectors. Air connectivity will strengthen the North East England Freeport proposition and will help to drive productivity improvements through logistics supply chains, with the ultimate aim of supporting the growth sectors in the region – from pharmaceuticals and life sciences to technology and advanced manufacturing. The Airport is delighted to play a role in the across-region partnership that will deliver this project.”

Lucy Winskell, Chair of the North East LEP said: “The North East is a perfect candidate for a freeport given its trading pedigree, its capabilities in green industries and the challenges it faces.  Our model is deeply collaborative and highly innovative. Our seaports, airport, businesses, universities and political leaders are working together to deliver a cutting edge, digitally enabled freeport which brings new growth across our region and regenerates many of the communities that need it most.”

Jamie Driscoll, Mayor of North of Tyne said: “The North East has always been a strong manufacturing and exporting region.  We want to secure the future for our workers, our kids and our grandkids.  This means developing our low carbon industries and building a green future.”

Councillor Graeme Miller, Chair of North East Combined Authority said: “This is a highly collaborative and compelling bid with the ability to transform the whole of the North East. Crucially, it provides significant opportunities for Nissan and the International Advanced Manufacturing Park (IAMP).”

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North East LEP and regional partners submit response to government’s consultation on UK Freeports

Paul Carbert, Economic Policy Co-ordinator at the North East Local Enterprise Partnership, outlines the North East’s innovative response, which would drive economic growth in the region, create jobs and regenerate coastal communities.

As the UK prepares to complete its exit from the EU and establishes new trading relationships around the world, the UK government launched a consultation earlier this year on Freeports policy.

Freeports and free zones are in place in many parts of the world. They are areas within a country’s land border where different customs rules apply, and are being considered by government as part of its future strategy to strengthen trade relationships and secure inward investment. Freeports provide benefits for exporters and importers because goods can be imported into, manufactured, and exported from inside the zone without incurring tariffs and customs duties unless they enter the domestic market. They offer the potential to promote regeneration and job creation in those areas within the zone and drive growth in the wider economy.

The government’s consultation has sought views on how they should structure their approach to Freeports. It envisages that because of their likely location close to ports or in coastal areas, the strategy offers the opportunity to stimulate the economies of often deprived areas. They are also seeking proposals which position Freeports as hubs for innovation to test new ideas and technologies. The North East Local Enterprise Partnership, and an active list of partners comprising of the North East and North of Tyne Combined Authorities, Business Durham, the CBI, the North East England Chamber of Commerce, Port of Blyth, Port of Sunderland, Port of Tyne, Newcastle International Airport, University of Sunderland, Durham University, Newcastle University, and Northumbria University, submitted a response to the Government’s consultation earlier this month that outlines the region’s preferred approach to Freeports; one that focuses on new growth and jobs, the regeneration of key coastal areas and the development of other parts of the regional economy. It also reinforces the need for the UK’s existing labour market, security and environmental standards to be maintained.

After conducting research and gathering the views of local partners, the North East response has proposed that a multi-site, digitally enabled Free Trade Zone – linking key manufacturing sites in the North East with ports – would provide the greatest benefit for the North East. It would add value to our current economy, provide an opportunity to deploy and test a range of new digital approaches, and guard against the risk of local displacement of economic activity. It would complement a free trade deal with the European Union.

The innovative approach put forward for the North East takes into account the region’s industrial and logistics structure and would build on its wide-ranging assets. It would allow the region’s digital sector to develop innovation that would improve the operation and efficiency of Freeports, and provide an opportunity to stimulate job growth in key sectors such as advanced manufacturing, energy, digital, and transport, particularly at a time when the region’s economy will be continuing to recover from the impact of the Covid-19 pandemic.

Whilst the region agrees Freeports are not a substitute for a comprehensive free trade deal with the EU – the preference in the North East is for both a deal and a Free Trade Zone – should the UK leave the transition period without a new trade deal, Freeports would mitigate some of the impact and provide opportunities to build on existing supply chains and clusters, and attract inward investment.

Following the submission of the region’s response to the Government’s consultation, the North East LEP and its partners will now work on preparing a collaborative bid to a government sponsored competition which is expected in the Autumn, to establish a North East Free Trade Zone.

To receive further updates about the North East LEP’s bid for a North East Free Trade Zone, please sign up to receive Insights North East, the newsletter from the North East Local Enterprise Partnership.