Member News

Solent to be a Freeport

The Solent has been selected by the government as one of the eight regions in England to be a Freeport. Freeports are an important part of the UK’s post‑COVID economic recovery, and the Solent Freeport will unlock billions of pounds’ worth of investment, create tens of thousands of new jobs and level up our important coastal communities.

Arrangements with government are currently being finalised, with a view to final confirmation of the tax sites and customs sites before the Freeport becomes operational at the end of the year.

Freeports are areas designated by the government that will benefit from incentives to encourage economic activity. Freeports operate with both ‘tax’ and ‘customs’ sites. Tax sites will offer occupiers business rates relief and other incentives to support capital investment, skills and employment. Business rates growth generated at the tax sites can be retained locally and reinvested in the area. Customs sites will help enable the tariff-free movement of goods for both export and import through simplified customs procedures.

The full business case is now being developed for approval by government – MHCLG and HM Treasury – and the tax sites and customs sites are expected to be agreed by government in the coming months.

Establishing the Solent Freeport will enable the creation of 52,000 new skilled and semi-skilled jobs including 26,000 direct jobs in the Solent and 26,000 in the wider UK supply chain. It is an investment in our future, providing both instant impact and long-term benefits. It will act as a magnet for an estimated £2 billion of extra investment comprising £1.4 billion from the private sector and £600 million in complementary public sector investment. The Solent has a track record in translating innovation and new technologies into commercial success, and there is an appetite for innovation and building sustainable, long-term opportunities now and in the future.

Focused on the Solent’s most disadvantaged communities, high quality employment space will be created, with investment targeted at state-ofthe-art growth sectors and groundbreaking approaches to decarbonisation. Partnerships with our three worldclass universities and research assets, alongside a dedicated Solent Freeport Green Growth Institute will provide a centre of excellence in green skills and jobs to ensure local communities – and in particular our young people – can benefit from opportunities created. COVID-19 has widened the opportunity gap for the UK’s most deprived communities and a Solent Freeport provides a once-in-a-generation opportunity to reverse this.

www.solentfreeport.com