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Chancellor ‘to set up 10 deregulated freeports’ in Brexit tax cut plans

Rishi Sunak reportedly planning to open bidding for towns, cities and regions to become designated zones where UK taxes and tariffs will not apply 

Sunday 12 July 2020 00:44 BST
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Rishi Sunak is reportedly planning to establish up to 10 new freeports to boost the UK's economy after Brexit
Rishi Sunak is reportedly planning to establish up to 10 new freeports to boost the UK's economy after Brexit (PA)

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Rishi Sunak is poised to introduce tax cuts and an overhaul of planning laws in up to 10 new deregulated freeports in a bid to boost the economy after Brexit.

The chancellor is reportedly planning to open bidding for towns, cities and regions to become freeports – where UK taxes and tariffs will not apply – in his autumn Budget.

The ports will be “fully operational” within 18 months of the UK leaving the customs union and single market at the end of this year, according to the Sunday Telegraph.

The report came as the government announced £700m is to be spent on building new infrastructure, hiring staff and developing technology to ensure Britain’s border systems are fully operational when the UK leaves the EU at the end of the year.

Cabinet Office minister Michael Gove said the major investment would ensure traders and the border industry are able to “manage the changes and seize the opportunities” when the transition period ends in December.

The £705m package includes £235m for staffing and IT systems, and £470m for port and inland infrastructure to ensure compliance with new customs procedures and controls.

New border infrastructure will be built inland where there is no space at ports, while ports will get one-off financial support to ensure the right infrastructure is in place.

Of the £235m for staffing and IT systems:

  • £100m will be used to develop HMRC systems to reduce the burden on traders
  • £20m will be spent on new equipment to keep the country safe
  •  £15m will go towards building new data infrastructure to enhance border flow and management
  • £10m will be used to recruit around 500 more Border Force personnel

The funding relates only to the implementation of Britain’s border with the EU, and the government is expected to publish specific guidance and measures for Northern Ireland in the coming weeks.

Mr Gove said: “We are taking back control of our borders, and leaving the single market and the customs union at the end of this year bringing both changes and significant opportunities for which we all need to prepare.

“That is why we are announcing this major package of investment today.

“With or without further agreement with the EU, this £705m will ensure that the necessary infrastructure, tech and border personnel are in place so that our traders and the border industry are able to manage the changes and seize the opportunities as we lay the foundations for the world’s most effective and secure border.”

The transition period is set to end at the end of December this year, when the UK will leave the single market and customs union.

The funding package comes ahead of a public information campaign in which guidance will be given to traders and hauliers explaining what they may need to do to prepare for the end of the transition period.

Additional reporting by PA

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