The Port of Felixstowe is a major part of the Freeport East bid
- Credit: Adam Boughey
Yesterday in his Budget the chancellor gave the go-ahead for Freeport East, a tax-free port in East Anglia. Here is everything you need to know.
What is Freeport East?
Freeport East is the plan for a tax-free port centred around Felixstowe and Harwich. But it will affect other areas of the region.
The Freeport East bid is focussed on Bathside Bay at Harwich and the Port of Felixstowe Logistics Park but includes proposals for tax and customs sites inland.
These sites include the planned new development at Gateway 14 near Stowmarket and Port One in Great Blakenham.
The Port of Felixstowe is a major part of the Freeport East bid
- Credit: Adam Boughey
A tax-free port in East Anglia could be the “silver bullet” the region’s economy needs to close the gap on the rest of the country, according to man behind the project.
It is estimated that a freeport in the East would create 13,500 jobs and secure up to £650million of investment for the region.
Freeports are exempt from import taxes on goods coming into the area which are not destined for the UK – effectively treating the area covered by the freeport as if it is not part of the country for tax purposes.
East Suffolk Council s cabinet will discuss the freeport proposals on Tuesday, February 2 and members are asked to give their backing to the plan so it can be submitted to Government three days later.
A report to councillors says: Freeport status would provide the catalyst for additional development, new economic activity and job creation in areas which have the land and the labour market for large-scale development but need central government stimulus to fully realise this opportunity. Up to 12,000 direct, indirect and construction jobs will be generated across the region in the event of construction and full occupation of the three tax sites, of which a majority of new jobs will be located in the Haven Ports area.