Businesses in Plymouth have welcomed formal approval of the city’s full freeport business plan, which they say could potentially unlock thousands of jobs and millions of pounds of investment.
On Wednesday the government gave the green light to the Plymouth and South Devon Freeport, creating a zone within which there will be certain allowances to boost the economy, including lower taxes and customs duties.
It is hoped more businesses will be attracted to the area to join the freeport in order to take advantage of the favourable trading taxes and tariffs.
Plymouth and South Devon Freeport, a partnership involving local authorities, education providers and companies operating in the city including Babcock and Princess Yachts, said the approval of the plan would ensure a £25m seed capital grant from the Government for essential infrastructure, as well as unlocking a £29m investment from local councils.
The freeport is also intended to:
- Enable new employment land to be bought forward at the three sites of South Yard, Langage and Sherford
- Accelerate the formation of advanced manufacturing clusters in marine, defence and space sectors with low carbon applications at the forefront
- Leverage £250m private sector investment
- Support a new £30m Innovation Centre at Oceansgate
- Provide a major expansion plan for Princess Yachts
- Deliver more than 3,500 jobs
The Plymouth and South Devon Freeport aims to enable innovators and investors from across the world to test, trial and take to market cutting edge technology and products. Working with the Department of International Trade, a team of experts will showcase the freeport to global investors and businesses who fit the criteria to expand or relocate to the region. The scheme will focus on the region's key marine, defence and advanced manufacturing industries, as well as its burgeoning space sector.
Energy development firm Carlton Power, the owner of Langage Energy Park and another stakeholder in the scheme, recently secured planning permission to build a 10MW green hydrogen electrolyser, meaning Langage could be home to the first hydrogen production hub of its kind for Devon and Cornwall. The hub will be a key facility for the freeport and will also help to deliver net zero goals for Freeport operations overall.
Plymouth and South Devon Freeport said innovators were lining up to leverage this hydrogen fuel supply to prototype and test future engines for vehicles and vessels – with the hope that these novel solutions will be manufactured in the Freeport.
Babcock chief executive David Lockwood said: “As a major employer in the region, we have actively supported this business case, which firmly aligns with our long term commitment to the area.”
“The freeport will bring significant opportunities and potential employment to the South West of the UK, and we are delighted to be part of this through our dedicated support to the Royal Navy, continued investment in our facilities and delivering wider economic benefits through our supply chain.”
In a post on social media Princess Yachts, the UK's largest luxury boat builder, described the approval as “great news for our brand home of Plymouth and the wider South West”.
The leader of Plymouth City Council, Richard Bingley, said: “The Freeport will deliver 3,500 well paid jobs and provide a free trade hub which will include advanced manufacturing and IT for Plymouth and South Devon. It’s putting this area on the map for foreign investment and attracting businesses to relocate here.
“This is a huge deal for this city and the wider region and I’m really excited about the opportunities it will create for our residents and our businesses.”
‘Levelling Up’ minister Dehenna Davison heralded the development as “historic” for the city and the wider South Devon region.
Ms Davison added: “The freeport is going to shape the fortunes of the Plymouth and South Devon economies by pumping up to £100 million worth of investment across the region. We are maximising the opportunities of Brexit to drive growth and throw our doors open to the world.”
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- Royal Navy support ships to be built at Devon’s Appledore shipyard
- Babcock hires 200 apprentices and graduates in Devon
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