Establishment of economic trading hubs around international transport terminals such as sea ports and airports is encouraged to promote regional growth after Brexit, a new report says.
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The report comes from Port Zones UK – a coalition of British airport and sea port operators led by the British Ports Association. It highlights the Government’s recently stated ambition to create up to 10 ‘free ports’ across the country.
These would encourage economic activity in post-Brexit Britain by allowing companies operating within a free port to import and export goods outside of normal tax and customs rules.
“In a global marketplace where competition for capital, resources and skilled personnel is fierce, it is crucial that vital transport nexuses – like airports and sea ports – are given the necessary business conditions to continue to grow,” said the British Ports Association’s chief executive Richard Ballantyne.
However the report highlights that granting free port status alone may not achieve the level of desired growth. The concept, it says, should be combined with enterprise zones as well as enhancements to the land side and marine planning systems to offer port zones ‘Enterprise, Development & Free Trade Area’ status.
In particular it highlights a need to speed up the process of granting planning permissions for development at ports and airports. ‘As the UK departs the European Union, it is critical that the UK Government and devolved administrations create an economic framework that boosts business clusters by lowering developer risk around global transport links,’ the report says.
Speaking at a launch event for the report on Monday, the Department for Transport’s deputy director of maritime policy Rod Paterson said: “Our exit from the European Union offers a valuable opportunity to reshape our trading ambitions and build on our strong trading relationships to stimulate new economic growth. Free ports can play an important role in allowing us to fulfil these ambitions.”
All Party Parliamentary Group on Free Ports chair Martin Vickers MP – a supporter of Brexit – emphasised that the UK must have its own trade policy independent from the European Union if it is to make the introduction of free ports a success.
“If implemented properly, free ports can attract new investment to some of the most disadvantaged areas of the UK,” he added, noting the opportunity to help close the north-south productivity gap. “As a policy it will be relatively easy to implement, with no major initial investment in infrastructure needed, but immediate results for businesses and increases in jobs.”
(Photograph: Port of Tyne)
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