Budget 2024: Continued support for Freeports and Investment Zones

During today’s Budget, the Chancellor Rachel Reeves confirmed that the government will continue to support existing Freeports in the UK as part of its economic growth strategy. 

Documents published shortly after the speech said funding was available for the Investment Zones and Freeports programmes UK-wide, including approval of the East Midlands Investment Zone to support advanced manufacturing and green industries, and the designation of five new customs sites in existing Freeports.

Bryan Bletso, partner and Head of International at Irwin Mitchell, said:

"We welcome the government’s commitment to freeports and investment zones, which are pivotal in enhancing the UK’s appeal to foreign direct investment (FDI). These initiatives not only stimulate economic growth but also create a conducive environment for international businesses to thrive.

“Our joint research with the Centre for Economics and Business Research (Cebr) has revealed that locations in the north of England and Scotland have become increasingly attractive to overseas investors. This is largely due to their strategic proximity to these investment zones and freeports, which offer significant logistical and economic advantages.

“Irwin Mitchell is closely connected with a number of organisations which are actively involved in running these freeports, and we are being increasingly being contacted by organisations looking to explore opportunities within them.

“By continuing to support and expand these zones by adding new customs sites within existing freeports, the government is laying a strong foundation for sustained economic development and international investment in these regions."

Freeports are designated areas, typically located at seaports or airports, where normal customs and tax rules do not apply. These zones offer various incentives such as tax reliefs, simplified customs procedures, and reduced tariffs to encourage economic activity, trade, and investment. The aim is to create hubs of innovation and economic growth by attracting businesses that benefit from these regulatory advantages.