The Plymouth and South Devon Freeport has now received approval from the Government for its Outline Business Case, along with two of its proposed tax sites.
A freeport in Plymouth and South Devon will create a zone designated by the Government with certain allowances to boost the economy.
These allowances will include lower taxes and customs, such as favourable tariffs, VAT or duties within the zone.
The news has been welcomed by business and economic leaders who say that the freeport will unlock millions of pounds worth of funding for the region.
They say that it will boost economic activity and create thousands of jobs as more businesses be attracted to the area because of favourable trading taxes and tariffs.
Cllrr Mark Shayer, Deputy Leader and Cabinet Member for Finance and Economy for Plymouth City Council said: “The Freeport has the potential to be one of the biggest economic boosts the region has seen in years and at a really critical time for our residents.
“Huge amounts of work has taken place behind the scenes to get an exciting but complex concept into existence and this approval of the outline business case is another positive signal that means we can get on with the task of creating higher-quality jobs, unlocking £100 million investment in just two years as well as get cracking on opportunities to upskill our workforce.”
What happens next?
Now the outline business case has been approved, the sign off for the full business case is expected in August.
It will include custom site and operator authorisation that will enable qualifying businesses to access the benefits that come with being part of the Freeport.
The next step is the recruitment of a permanent chair and CEO of the Plymouth and South Devon Freeport Limited - a private company limited by guarantee without share capital - set up to lead the project.
The Plymouth and South Devon Freeport will officially be operational in the autumn once the Full Business Case has been approved.
Who's behind the Freeport scheme?
Plymouth City Council, South Hams District Council and Devon County Council have worked with private sector organisations and landowners and created Plymouth and South Devon Freeport Limited, a private company limited by guarantee without share capital.
It is currently being led by interim chair Adrian Bratt, general counsel at Princess Yachts.
Mr Bratt said that this latest development shows that the Government has acknowledged that the South West is already a world leader for its marine, defence and space clusters.
He said: "The Freeport will supercharge these existing specialities furthering the investment, growth and development of the city and region as a whole.”
What areas are included in the Freeport Zone?
Three key sites in and around Plymouth have been earmarked to form part of the freeport making more than 130 hectares of land available.
A freeport is a designated area within UK borders where different economic regulations apply, encompassing tax reliefs, customs advantages, business rates retention, planning, regeneration, innovation and trade and investment support.
They are:
South Yard – in addition to the existing Oceansgate complex, this area will be further developed as a “tax site” and will include a new innovation centre, a mobility hub and new factory developments.
Langage – developed as a “tax site” with a customs zone within it and space for light industrial units for high-value engineering and manufacturing. The main focus will be marine, defence and space. The site also includes proposals for a green hydrogen electrolyser plant.
Sherford – developed as a logistics hub with a tax and customs boundary with warehousing storage and engineering space.
Existing businesses can apply if they can show that locating within the freeport would help them grow and generate economic growth provided their plans cannot be accommodated at their existing location.
