Agenda item

A paper was submitted which presented the background information regarding the Government’s Freeport Policy together with an update on the work underway to prepare a formal submission, including setting out the key issues relating to the submission and its links with the Strategic Economic Plan.

M Lynam and T Lees provided Members with a presentation on the latest update position.  Members noted the following points:-

·            The Government had set out three policy objectives for Freeports, which had been primarily developed by the Treasury. 

·            A total of 3,500 Freeports were located around the World and had existed in many locations for over 40 years.  The UK model was a bespoke and unique approach, which had not been replicated in other countries. 

·            The priorities set out by the Government related to creating hubs for global trading and investment, regeneration, job creation and levelling up in order to create higher paid and higher skilled jobs, to promote the innovation and trialling of new technologies, initiatives and ideas around the sites. 

·            Tax sites and Customs sites would need to be identified within the UK model.

·            Freeports required a site which was a port that could receive international goods and should consist of both Customs and Tax sites.

·            Tax sites required under developed land which could be aligned with the bidding area’s focus. 

·            Customs sites were required to have demonstratable import/export activity. 

·            A stringent authorisation process would be undertaken by the sites, which was the equivalent to the Approved Economic Operator.

The Government had published a bidding prospectus on 16 November 2020, for the establishment of up to 10 Freeports in the UK, with one in each of the four nations.  This was a competitive process, to which approximately 30 locations had expressed an interest.  The deadline for bid submissions to MHCLG was 5 February 2021, and a decision would be made by the Ministers in the Spring 2021.  Successful bids would be required to prepare an Outline Business Case during the Summer 2021.  Work was underway to reach a final bid submission.

The South Yorkshire Freeport bid had been formed around the IPort and Doncaster Sheffield Airport which were both closely based together in Doncaster.  Far reaching engagement had been made with partners.  The Chambers had provided assistance in arranging online sessions with over 45 South Yorkshire based businesses regarding the potential opportunities offered by the Freeport bid and to identify those businesses which wished to become Customs sites.

J Muir suggested that it would be helpful to discuss the economic implications for Tax and Customs sites outside of the meeting, in order to acquire an understanding to be shared with colleagues.  ACTION:-  J Muir

The MCA Investment Team continued to focus outside of the SCR, with a view to bringing investment into the area.  As part of the implementation plan for the successful bids, there was an expectation to set out how the investment would be attracted.  A requirement within the Freeport Policy related to how the retained business rates were used on the Tax sites; a local authority with a Tax site could retain 100% of the rates on the site provided that it was used for either reinvestment on the site for economic growth, to cover any necessary associated overheads, to offset or to displace any benefits which may occur.

The Board noted the requirement for an aggressive business growth strategy which would attract businesses into the region.

Professor Husbands considered that Freeports were the wrong way to stimulate economic growth and that far better approaches could be taken to building the economic development.  However, within his capacity of a Member of the Board which was concerned to make the best choices for the SCR within the policy mix, he did not consider that there was an alternative other than to submit a proposal.  He considered that it was necessary to ascertain the approach to be taken when displacement occurred.

T Lee referred to the modelling work underway on the benefits of the economic impact and other matters which would be finalised in the upcoming week or so.  He would provide further information onto the Chair, for circulation onto the Members of the Board.                    ACTION:-  T Lee

Councillor Read queried the advantages of the potential different elements of having a South Yorkshire Freeport.  He was unsure whether it was pragmatic to submit a bid, due to the challenge for the SCR to establish the economic growth that was required.  He did not wish to support the recommendations outlined within the report, although he appreciated that businesses were in favour of a South Yorkshire Freeport.  He urged the Board to be cautious.

Mayor Jones CBE applauded the fact that the Doncaster Sheffield Airport and the IPort had been brought together to form one bid.  She hoped that this would bring higher skilled and higher paid jobs into the region to enable the region’s economic recovery to grow at pace.

J Muir stated that subject to a successful bid, it would be necessary for the Board to address the various points raised at today’s meeting.  He acknowledged the volume of work the undertaken by T Lee and M Lyman in the preparation of the bid.

RESOLVED - That members noted the content of the report and provided a steer on the key discussion points / issues set out in the paper.