Freeports: Essex County Council hails once-in-a-generation chance

A bid to build a freeport in Essex has been hailed as a "once in a generation opportunity to benefit the area".

Plans for Freeport East, which would unify the Harwich International Port and the Port of Felixstowe, were announced by the government in March.

Goods which arrive in freeports are exempt from tariffs unless they are moved to elsewhere in the UK.

Essex County Council leader, Kevin Bentley, hoped the plans will maximise retained business rate income.

Freeports are usually located around shipping ports, or airports and are intended to stimulate economic activity in their area.

Studies have found they encourage imports by lowering duty and paperwork costs and manufacturing businesses inside them can benefit from cheaper imported goods, the Local Democracy Reporting Service said.

The business rate retention system is one where councils retain up to half of the rates revenue raised from businesses in their area, with the remainder retained by the government for grant funding for local authorities.

It is believed Freeport East could create up to 13,500 jobs for the area over 10 years, and an estimated additional 1.3m tonnes of international trade volume and £66.4m in extra goods and services.

Mr Bentley confirmed his "non legally binding" commitment to both this project and the plans for Bathside Bay in Harwich, which received permission in 2006 to expand into a £300m container port.

He said he expected local authorities to work together "to maximise the amount of retained business rates income, by delivering tax and customs sites early".

"Once these sites are delivered, the benefits must be shared widely - including reaching residents and businesses in deprived communities within north Essex," he said.

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