Brexit Blog: Why East Anglia must be part of the post-Brexit freeport movement

As one of the UK's busiest ports, Felixstowe can make a strong case for being one of the new freepor

As one of the UK's busiest ports, Felixstowe can make a strong case for being one of the new freeports Picture: Getty Images/iStockphoto - Credit: Getty Images/iStockphoto

In the seventh of our series of weekly Brexit Blogs, Paul Briddon of Lovewell Blake outlines how plans to create ten UK Freeports after Brexit could benefit our region.

The idea of freeports is to stimulate economic activity - and the East of England must have one Pi

The idea of freeports is to stimulate economic activity - and the East of England must have one Picture: Getty Images/iStockphoto - Credit: Getty Images/iStockphoto

With continued uncertainty about the levels of import and export tariffs when the Brexit transition period ends on December 31, the Government is pressing ahead with its plans to create ten freeports in the UK, which it says are ‘designed to attract major domestic and international investment’ and will ‘create jobs, drive investment and regenerate communities’.

The idea is that these designated areas, which can be airports or rail hubs as well as seaports, would be combined with special economic zones (similar to the existing Enterprise Zones), which would be effectively outside the UK’s customs borders, even though they would be situated on British territory.

As goods that are brought into a freeport do not face import tariffs, they can be imported, subjected to a manufacturing process and re-exported without being subject to checks, paperwork or indeed tariffs.

Despite the fact that the Government is claiming that the creation of freeports are ‘seizing on the opportunities presented by leaving the European Union’, the concept is not precluded by EU membership. There are in fact around 80 such free zones already in the EU and there were seven in the UK as recently as 2012.


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The bidding process for the new freeports is due to open by the end of the year, with the first ones up and running in 2021. So could this be a boost for our part of the world?

In terms of seaports, Felixstowe in Suffolk would be an obvious candidate, being one of the busiest international goods ports in the UK. But places such as Great Yarmouth, which is emerging as an important UK centre for the offshore green energy sector and already benefits from Enterprise Zone status, could conceivably also make a claim.

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Of course, a lot depends on the outcome of the current fraught trade negotiations with the EU. Given that state aid and the level playing field are the central points of disagreement, giving tax incentives to companies using freeports could be problematic, particularly if a deal is done and the UK does agree to be bound by EU state-aid rules.

Some critics argue that the whole concept of freeports can be used to circumvent taxes and tariffs, while at the same time offering opportunities for lowering standards on things like health and safety and workers’ rights, or even allowing money laundering.

And of course, if import tariffs are imposed, they will still need to be paid at the point where any goods left the freeport area for the rest of the UK.

But given that the Government is pressing ahead with its freeports plan, it is important that East Anglia secures at least one of the ten that are proposed. Some commentators predict the plan won’t increase business overall, but will simply transfer it into the freeports – and if that is the case, it is imperative that our region gets a slice of the action.

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