A “Full Business Case” for the new East Midlands Freeport has been handed into Government.
The document builds on the “Outline Business Case” approved in February and, if approved, will unlock the complete range of benefits offered by the low tax area.
The Government has confirmed that eligible companies investing in its three zones – around East Midlands Airport, the Ratcliffe on Soar power station redevelopment site and the East Midlands Intermodal Park near the Derbyshire Toyota plant – can already access certain benefits.
The new blueprint makes the case for £25 million of seed capital funding that will deliver new roads, cycle routes, land preparation works and a Hydrogen Skills Academy.
The Government believes the three East Midlands tax sites will support 61,000 jobs and bring an extra £8.9 billion into the local economy over 30 years.
A Freeport customs site (or “free zone”) is a secure, enclosed customs zone exempt from some tax and customs rules.
They are run by a “Customs Site Operator”, responsible for the security of the site and keeping records about goods moving in, around and out of the site, and the activities undertaken there.
Imports can enter with simplified customs documentation and no tariffs, and businesses operating inside designated areas in and around the freeport can manufacture goods using the imports and add value before exporting again without facing the full tariffs or customs procedures.
Some, however, have criticised the freeports policy – championed by Chancellor Rishi Sunak – as a way of offering further tax breaks to already wealthy corporations.
Leicestershire County Council said the Hydrogen Skills Academy, backed by universities in Loughborough, Nottingham and Derby, could open in November 2023, and would be the UK’s first “practical, industry-based training centre associated with the production, handling, storage and use of hydrogen”.
Former East Midlands Airport boss Penny Coates chairs the East Midlands Freeport board.
She said: “The submission of the Full Business Case to Government demonstrates our continued progress in building the UK’s only inland and best-connected freeport.
“The designation of our Tax Sites in March means the freeport is already offering real benefits to attract new investment to the East Midlands.
“Approval of the Full Business Case will enable us to deliver even more benefits, both for businesses and communities across the region.
“The Hydrogen Skills Academy is just one example of how the freeport is harnessing our region’s strengths to further increase our ability to secure new opportunities for the future, creating new jobs whilst supporting the advance towards Net Zero.
“This has all been made possible by the ongoing collaboration and hard work of our public and private sector partners, whose shared commitment will continue to ensure the Freeport delivers its full potential.”
