Labour left embarrassed by ‘complete cock-up’ because it emerges Rachel Reeves will not unveil any new freeports in her Budget… simply days after PM boasted he is creating 5 new freeports

Labour has been left red-faced by a ‘total cock-up’ as it emerged Rachel Reeves won’t be announcing any new freeports in her upcoming Budget.

This is despite Downing Street boasting just days ago about how the Government is creating ‘five new freeports’.

Instead, the Chancellor is expected to announce only ‘next steps’ on five existing freeports when she unveils her Budget on Wednesday.

This will see them receive official clearance to have customs sites within their boundaries. 

Government officials told the Financial Times the hugely embarrassing error was due to a ‘total cock-up with the comms’.

Rachel Reeves and Sir Keir Starmer pictured on a visit to Tilbury Freeport, Essex, in November last year

Former prime ministers Boris Johnson and Rishi Sunak both hailed freeports, which are sites that enjoy special tax benefits, as one of the benefits of Brexit.

There are currently eight freeports in England, two in Scotland, and two in Wales. 

It is reported that Ms Reeves will on Wednesday announce ‘continued funding’ for the existing freeports scheme.

She is expected to confirm that five other freeports with join the seven that already have operational customs zones, allowing them certain benefits such as only paying tariffs on finished products when they are placed on the market and receiving tax breaks on hiring new staff.

But this is far removed from a Downing Street announcement on Friday, which was issued while the Prime Minister was in Samoa at a Commonwealth summit.

No10 had said the Chancellor would be announcing ‘five new freeports as part of the Government’s package of measures to fix the foundations and rebuild the country’.

A quote from Sir Keir Starmer to accompany the announcement added: ‘I have always said I will look at whatever will deliver for working people, with no ideological lens.

‘So yes, freeports were a scheme we inherited, but when combined with Labour’s this Government’s laser focus on growth generated from the ground up, we will maximise their potential.

‘My Government is rewiring how and where growth is generated to secure investment and create good jobs for working people.’

During his visit to Samoa, the PM was asked about the commitment and whether ‘announcing in the Budget five new freeports’ was an acknowledgement that the Conservative approach had been successful.

Sir Keir replied: ‘Freeports were introduced by the last government, and what we did was to look at them.

‘I didn’t want to take the sort of ideological view that just because they were introduced by the last government, we would sort of stand them down.

‘We looked at them, they are working well, I think they can work better.

‘So rather than stand them down, we’re going to go with it, but we’re going to make some improvements so they work even better.’

A Government source did not dispute that a communications mix-up was to blame for Friday’s error, saying there had been confusion over the distinction between customs sites and freeports.

They said: ‘It’s really important for the partners involved in the freeports and the businesses who are investing to know that this Government remains committed to ensuring the customs benefits remain on offer and are available in the new sites.’