HARWICH’S status as a low-tax freeport zone will start at the end of the month, it is understood.

The Freeport East group, made up from local authorities and businesses including Harwich International Port, celebrated after the Government announced in March that Harwich and Felixstowe would become a freeport.

Freeport status means areas will benefit from tax reliefs and simplified customs procedures in order to encourage economic activity, which the Government sees as a means of boosting global trade following Brexit.

Freeport East was one of eight new freeports announced earlier this year and the group estimates it could create 13,000 new jobs and £500million of investment over the next five years.

Freeport East said it has moved a significant step closer to fulfilling its vision.

The outline business case has now been formally approved by Government and Statutory Instruments laid to enshrine them in legislation.

Gazette:

  • Project chairman - George Kieffer

George Kieffer, acting chairman of Freeport East, said: “This is a major achievement. Freeport East represents a unique opportunity to deliver economic growth and will create many high skilled jobs in the local communities.

“It will work closely together with the private sector as well as education institutions to create these opportunities through innovation and investment.

“Following designation, businesses investing in the Freeport’s tax sites will be able to benefit from a number of tax reliefs.

“The UK Freeports policy is designed to encourage businesses from around the world to create new hubs of global trade that will transform economic prospects and job opportunities for local communities.

“The location of Freeport East, with the country’s main unitised trade hub at its core and 50 per cent of planned offshore wind capacity on its doorstep, could not be better placed to deliver on these objectives and to help the UK achieve its ambitious energy transition objectives.”

The tax reliefs that will be available in the designated tax sites are Stamp Duty Land Tax Relief, Enhanced Capital Allowances, Enhanced Structures and Buildings Allowance, National Insurance Contributions rate relief and business rates relief.

The Department for Levelling Up, Housing and Communities said Freeport East will begin "initial operations" later this month as eligible businesses that base themselves in the tax site start to benefit from tax incentives.

Proposals for Freeport East include developing Bathside Bay as a tax and customs site.