The opportunities Freeports provide for industry
We outline how industry can capitalise on the opportunities they present for these regions.
In the Spring Budget 2021 the Chancellor announced the creation of eight Freeports in England at the following locations: East Midlands Airport, Felixstowe and Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames and Teesside. We outline how industry can capitalise on the opportunities they present for these regions.
Investment hubs to fuel recovery
The areas given Freeport status will benefit from simplified customs rules, a wide range of tax reliefs and government support. The government hopes Freeports will attract investment, creating hubs of expertise and skilled jobs, which in turn will increase opportunities and prosperity in local areas. This is an essential element of the levelling-up agenda.
As the UK has now left the EU, the UK will have the flexibility to adopt a more generous Freeport policy. This is anticipated to drive post-Brexit growth and in turn, support the UK’s post-pandemic economic recovery.
The implementation of Freeports in the UK will be adopted using a bespoke model, which aims to achieve the following three objectives:
- establish Freeports as national hubs for global trade and investment across the UK
- promote regeneration and job creation
- create hotbeds for innovation
The impact and opportunity for corporates
According to Paul Kelly, Strategic Advisory Director at Mace, “the true potential is for Freeports to be the catalyst to shape how those awarded regions harness the benefits for the wider strategic growth and regeneration of their communities. This goes far beyond short-term implementation benefits. How each Freeport is structured and governed to enable long-term, sustainable investment will be the acid test of their effectiveness.”
We expect the biggest immediate opportunity to be for importers, exporters and manufacturers. Freeports will enable the import of materials, manufacturing of goods and incorporation into final products which can then be exported - all without the usual tariffs and with reduced regulation. Businesses in the supply chain who support these manufacturing activities, including logistics and shipping companies, will also benefit as a result.
The investment in infrastructure will play an important role in Freeports, both in facilitating access between nearby industrial clusters, ports, customs zones and in maximising the wider economic impact in the local area. Various service providers and construction companies are expected to benefit from this investment.
Furthermore, to help maximise the regeneration of local areas around Freeports, the government will be increasing investment through various means. This will cover new and enhanced supply chains to meet demand, upgraded local transport links and new housing developments – an exciting prospect for large regional businesses.
The establishment of Freeports to create hotbeds of innovation is also a key objective. The government intends for Freeports to be a dynamic environment to foster innovation, which will allow for the generation and testing of new ideas across a range of sectors from aviation, rail and maritime to emerging green technologies. Each sector has its role to play in driving the decarbonisation agenda (discussed in more detail below).
Businesses should seize the opportunity to collaborate as the success of Freeports will rely, at least partially, on the innovation and expertise developed in each region.
Concerns with Freeports
We acknowledge the criticism from the UK Trade Policy Observatory (UKTPO) which cautions that the wider economic impact of Freeports are mixed, as they depend heavily on the design, infrastructure, capital and availability of skilled labour within the Freeport. The UKTPO further highlights the risk that Freeports don’t generate new economic activity. Instead they divert existing business operations into the area due to the advantageous tax reliefs and customs benefits.
Critics also raise the point that the UK closed seven Freeports in 2012, when the relevant legislation expired as they were deemed unnecessary. Having said that, it is acknowledged that the development and transformation of the London Docklands in the 1980s was largely due to the freedoms of Freeports. It is hoped that such success will be repeated in the next decade.
We anticipate the benefits of Freeports will be far wider reaching than similar models such as Enterprise Zones. This is likely given that the UK are no longer subject to the EU state aid rules, which always posed a challenge to the concept of Freeports.
The types of tax relief expected at Freeports
Whilst the proposals are still being reviewed and are subject to approval, the following tax reliefs are expected:
- Enhanced capital allowance of 100% for companies investing in plant and machinery for use at Freeport sites
- Enhanced 10% rate of Structures and Buildings Allowance for firms constructing or renovating non-residential buildings or structures in Freeport sites
- Full business rates relief
- Full relief from stamp duty land tax on the purchase of land or property at Freeport sites
- National insurance contributions relief
Contribution to the decarbonisation agenda
Freeports present a welcome opportunity for the government to drive the decarbonisation agenda, in line with the UK’s target of net-zero emissions by 2050. It’s expected that these regions will become innovation hubs, which will enable businesses to further invest in low-carbon technologies by testing new ideas and green technologies.
For example, the East Midlands’ bid for Freeport status included plans to significantly increase investment and drive innovation in alternative energy sources and green technologies. The opportunity to accelerate green innovation will be supported by local small to medium enterprises and large businesses operating in the region, including Rolls Royce, Toyota and Bombardier.
Interestingly the SNP Scottish government, who initially opposed Freeports, now have plans to introduce its own scheme of ‘green ports’. The green ports model will adapt the UK Freeports proposal and will focus on inclusive growth, fair working practices and delivering a net-zero economy by supporting green innovation.
The UK government are still formulating the details around Freeports and their usage. As these details emerge we can share these with you, advise on their potential impact and explore opportunities to help you get involved in the discussion and make your views heard.
Find out more
Browne Jacobson has given wide ranging advice in relation to the establishment of Freeports and their key features and advantages. We are keen to discuss this with you, hear your views and explore the opportunities for your business. Please feel free to get in touch with Declan Cushley to discuss further.
Contact

Declan Cushley
Partner
declan.cushley@brownejacobson.com
+44 (0)20 796 53991
Related expertise
You may be interested in...
In Person Event
'Autonomous vehicles: what the future holds' event
Opinion
Mediation – remote or in person?
Opinion
The UK market offers the best value for commercial real estate
Legal Update
Product distribution – how to protect yourself from an early exit
Published Article
Consumer duty part 3 - 'The drill-down' into the 'cross-cutting' rules
On-Demand
Automotive webinar - EV charging points: contractual and liability issues to be aware of
On-Demand
Automotive webinar - Grant Funding and Collaboration Agreements
In this session, we examined the legal framework around grant funded collaborations and discussed the key risks to be aware of, including IP ownership and compliance with grant terms.
On-Demand
Automotive webinar - Commercial Contracts
Press Release
Browne Jacobson advises sustainable waste solution provider Covanta Europe on its new Wellingborough based aggregate processing plant
Press Release - #BeingBrowneJacobson
From associate to partner in an investment lifecycle - Ryan's story
Press Release - #BeingBrowneJacobson
Browne Jacobson helps the Civil Aviation Authority take off with its modernisation masterplan
Press Release
Browne Jacobson’s retail lawyers advise Wilko on its strategic £48m sale and leaseback of Nottinghamshire distribution centre to DHL
National law firm Browne Jacobson has advised long standing retail client, Wilko on the sale and leaseback of its Nottinghamshire distribution centre in Worksop to logistics specialist DHL for £48m.
Legal Update
Trigger happy when directors’ duties are the target?
In a judgment handed down yesterday the Supreme Court has affirmed that a so called “creditor duty” exists for directors such that in some circumstances company directors are required to act in accordance with, or to consider the interests of creditors. Those circumstances potentially arise when a company is insolvent or where there is a “probability” of an insolvency. We explore below the “trigger” for such a test to apply and its implications.
Legal Update
The Retained EU Law
Created at the end of the Brexit transition period, Retained EU Law is a category of domestic law that consists of EU-derived legislation retained in our domestic legal framework by the European Union (Withdrawal) Act 2018. This was never intended to be a permanent arrangement as parliament promised to deal with retained EU law through the Retained EU Law (Revocation and Reform) Bill (the “Bill”).
Opinion
Sequana: Supreme clarification on the duty owed to creditors
The Supreme Court has unanimously dismissed the BTI v Sequana appeal and reviewed the existence, content and engagement of the so-called ‘creditor duty’; being the point at which the interest of creditors is said to intrude upon the decision-making of directors of companies in financial distress.
Opinion
IR35 rules to be scrapped from April 2023
Published Article
The problematic transition to electric vehicles - what is the impact on manufacturing
It was reported in May 2022 that the BMW-owned manufacturer had been forced to put a temporary stop on the production of all manual transmission vehicles due to the global semi-conductor shortage and the war in Ukraine. Mini stated that the move was made in order to "ensure production stability".
Press Release - Careers
Browne Jacobson strengthens its UK&I commercial practice with hire of new retail & consumer specialist partner
Browne Jacobson has bolstered its commercial practice in the UK with the appointment of commercial contracts and international trade specialist, Emma Roake, into its City-based London team.
Press Release
Browne Jacobson’s Private Equity specialists advise Palatine on key CTS exit
Browne Jacobson’s national private equity (PE) lawyers have advised leading mid-market PE investment firm, Palatine Private Equity (Palatine) on its exit from CTS Group, the fast-growing specialist in testing, inspection and geoengineering consulting services to the construction and infrastructure sectors.
Press Release
Browne Jacobson’s specialist corporate finance lawyers advise LDC on sale of global IT services provider
Browne Jacobson’s corporate finance lawyers have advised leading mid-market private equity firm, LDC and management on the sale of specialist managed IT services provider, Littlefish to Bowmark Capital.
Legal Update
Digital Markets Act and Data Platforms - FRANDs for life?
The Digital Markets Act (the “DMA”) joins the dots between competition law and data protection law and actively targets data-driven platforms. It is also a comprehensive regulation to take note of, with familiar GDPR-style fines tied to turnover.
Opinion
Cameras in convenience stores: a potential hornet’s nest..?
Press Release
Browne Jacobson advise CTS Group on acquisition of In Situ testing specialists
Browne Jacobson’s private equity (PE) dealmakers have advised Palatine Private Equity backed CTS Group (Construction Testing Solutions Limited) on its acquisition of In Situ Site Investigation, a market leader in Cone Penetration Testing and Pressuremeter techniques and ground investigation services.
Press Release
Browne Jacobson advise Rcapital on acquisition of two managing general agents by insurance investment specialist, Primary Group
Browne Jacobson’s corporate finance lawyers have advised leading private equity investor, Rcapital Partners LLP (Rcapital) on its majority stake acquisition of managing general agents (MGAs), UK General Insurance Ltd (UKG) and Precision Partnership Limited (PPL) alongside Montague Investment Group LLP who are taking a minority stake.
Published Article
Sole director decisions Another perspective
In an unreported case (Re Active Wear Limited (in Administration)), the High Court has ruled that an out-of-court administration appointment, instigated by a sole director of a company with unmodified model articles, was valid notwithstanding the earlier decision of Deputy Judge Farnhill (also in the High Court) in the case Hashmi v Lorimer-Wing (also known as Re Fore Fitness Investments Holdings Ltd) [2022] EWHC 191 (Ch) (02 February 2022).
Legal Update
Merger and Acquisition trends in the specialist lending market
Published Article
Rolls Royce SMR ambitions will bring Hinkley like benefits to regions
Rolls-Royce has shortlisted six locations for its first factory for small nuclear power stations. We look at the impact on regions & local businesses
Legal Update
Banking Transaction Update July 2022 - North West transactions
There are clearly challenging macro-economic factors at play but at Browne Jacobson we continue to see good levels of transactional activity with certain sectors being particularly buoyant: healthcare, financial services, energy & infrastructure and tech.
Opinion
Covid Rent Arrears: Cinema operators’ appeals dismissed
The Court of Appeal has dismissed two cases regarding rent arrears accrued during the Covid lockdowns. The cases are London Trocadero (2015) LLP v Picturehouse Cinemas Ltd and Bank of New York Mellon (International) Ltd v Cine-UK Ltd.
Press Release
Browne Jacobson advise on the disposal of international chemical manufacturer
Browne Jacobson’s corporate lawyers have successfully advised the shareholders of specialist chemical manufacturer, Amity International on its acquisition by Belimed AG, a subsidiary of Metall Zug AG.
Opinion
Proceed with caution – covenants in franchise agreements
In the recent case of Dwyer (UK Franchising) Limited v Fredbar Limited and ano’r [2022] EWCA Civ 889, the Court of Appeal considered the reasonableness of restrictive covenants in a franchise agreement.
Press Release
Browne Jacobson’s North West dealmakers advise on shipping and logistics business acquisition of Lancashire based World Options
Browne Jacobson’s Manchester based corporate lawyers have advised tech enabled shipping and logistics service provider, World Options on its majority buyout by Italian headquartered MBE Worldwide (“MBE”) for an undisclosed sum.
Press Release
Browne Jacobson advises AIM listed green hydrogen tech business on global electrolyser licence deal
Browne Jacobson’s specialist cleantech lawyers have advised AIM market listed Clean Power Hydrogen Group Limited (CPH2) on its global licence agreement with GHFG Ltd.
Opinion
Court of Appeal overturns “fire and re-hire” injunction
The Court of Appeal overturned the “fire and re-hire” injunction, finding that there was nothing in the express contractual provisions preventing Tesco from giving the notice to terminate employment in the usual way.
Press Release
Browne Jacobson advises BGF on its exit from business communications specialist Jola Cloud Solutions
We advised equity investor, Business Growth Fund on its exit from mobile data SIMs & business communications specialist Jola Cloud Solutions.
Press Release
Browne Jacobson dealmakers advise on Dutch PE firm’s investment into Cooper Parry
Browne Jacobson have successfully advised the partners of leading accountancy firm Cooper Parry on the agreement for Dutch based firm, Waterland Private Equity to invest in the business.
Opinion
Compliance - small businesses and new regulation
The Federation of Small Businesses (FSB) has released a report setting out the impact of new and changing regulations arising from the pandemic on small businesses across the UK.
Press Release
Browne Jacobson advises London based insurance disrupter Laka on further venture capital investment
Browne Jacobson’s corporate tech lawyers have advised specialist bicycle insurer Laka on an investment from Porsche Ventures (a venture capital division of Porsche AG), bringing its series A investment round to a total of $13.5m.
Press Release
Browne Jacobson dealmakers advise LDC on significant investment in global advertising partner
Browne Jacobson have successfully advised leading mid-market private equity firm LDC on its investment into global programmatic advertising company, Blis. The transaction will support Blis’ international growth strategy.
Press Release
Browne Jacobson advises Charterpoint on sale of 73-bed care home site
Browne Jacobson has successfully advised Nottingham based developer Charterpoint on the sale of a 1.2 acre care home development site in Thurnby (Leicestershire) to care home operator Cinnamon.