Labour will announce five new freeports in the Budget next week – once dubbed a ‘Brexit benefit’ by the Tories.
In a bid to drive growth across the country, the Government will roll out five more of the special economic zones which offer various tax and customs reliefs.
The Chancellor will also announce plans for an investment zone in the East Midlands. These use public money to attract private investment to a region – and could create 89,000 additional jobs within a decade, ministers believe.
Announcing the plans for freeports and the new investment zone, Sir Keir Starmer said the schemes will ‘have this Government’s stamp on them’.
The Prime Minister acknowledged he was copying the Tories, but said he would do ‘whatever will deliver for working people, with no ideological lens’.
Rachel Reeves is expected to say where the five new freeports will be located when she delivers her Budget to MPs on Wednesday
In a bid to drive growth across the country, the Government will roll out five more of the special economic zones which offer various tax and customs reliefs
Speaking at the Commonwealth summit in Samoa, the Prime Minister said: ‘These zones attract investment, and they’re measured in tens of thousands of well paid jobs.’
He did however say he wanted to ‘make some tweaks’ to ensure freeports did bring new investment to UK regions, rather than just move existing money around.
He said: ‘Economic growth is the number one mission of this Government, measured in living standards going up, and people feeling better off, in well paid jobs across every part of the United Kingdom.
‘Targeted programmes that attract investment and generate jobs and growth for local people, underpinned by our industrial strategy, and the economic stability my Government brings, will turbocharge the potential of areas across the country.’
He added: ‘Yes, freeports were a scheme we inherited, but when combined with Labour’s laser focus on growth generated from the ground up, we will maximise their potential.’
Downing Street said freeports have attracted £2.9billion of investment, and have created an estimated 6,000 jobs.
Rishi Sunak previously described freeports as ‘a Brexit benefit’ which attracts jobs and investment around the country. Freeports existed before, but the EU’s state aid rules restricted the benefits that could be offered to businesses based inside the sites.
Rishi Sunak previously described freeports as ‘a Brexit benefit’ which attracts jobs and investment around the country
Announcing the plans for freeports and the new investment zone, Sir Keir Starmer said the schemes will ‘have this Government’s stamp on them’
Now, they are more substantive – benefiting from both customs measures and a range of tax reliefs and support.
Rachel Reeves is expected to say where the five new freeports will be located when she delivers her Budget to MPs on Wednesday. Labour previously announced two investment zones, and the Budget will confirm a third – based in the East Midlands with a focus on high tech green industry.
Meanwhile, Ms Reeves was last night under growing pressure not to hike flying taxes as analysis revealed British holidaymakers are already the most taxed in Europe.
The International Air Transport Association (IATA) found that those departing the UK last year paid at least double what passengers did to take off from other European countries. The Netherlands and Italy had the second and third highest ticket taxes.
Ms Reeves is poised to confirm hikes in a stealth levy on plane fares, called Air Passenger Duty, in her Budget.