Wirral’s new freeport is expected to bring in nearly £50m every year according to a council report.
This comes as Wirral Council has revealed how it plans to use an estimated £15m generated linked to the new Wirral Waters freeport and invest in areas like Birkenhead and Seacombe.
The £15m is expected to be generated over five years through a new Freeport Investment Fund linked to the Freeport being established on the Birkenhead docks with an estimated £50m in added value to the Wirral expected to be brought in every year.
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The report, which will be considered by councillors on March 22, said the freeport will also support the creation of nearly 800 new jobs and increase the amount of money businesses pay to the council by around £1.2m every year.
Freeports was a scheme set up to create special areas within the UK with tax relief schemes and other incentives to try and drive investment, according to the UK government.
Three areas within the Liverpool City Region have been given that status with one covering the West Float area owned by Peel L&P and Northside in Seacombe. Within this area, businesses relocating to the area won’t have to pay business rates for five years among other benefits.
This no-business rates benefit will be available up until 2026 with the UK government paying the council the costs. Wirral Council after this will be able to keep 100% of the business rates generated for 25 years giving it “the certainty needed to borrow to invest in regeneration and infrastructure that will support further growth.”
This investment will come in the form of the Wirral Freeport Investment Fund established from the beginning of April. The fund will come from extra revenue created by new businesses which will be invested in different projects as well as paying back borrowing to fund developments.
The freeport scheme is expected to bring in £850m to the Liverpool City Region overall with 14,000 jobs. In Wirral, £8m will be used to help develop the tax site and support building developments which will be overseen by the city region. £300,000 will also be given annually to help pay for management of the freeport for four years.
The council report also sets out the reasons for why the council is creating the freeport fund.
This is to support wider regeneration of eastern Wirral, financial stability for the region, and bring in manufacturing, maritime, and energy jobs in “some of the most deprived communities within England.
Cllr Ian Lewis during a Economy, Regeneration, and Housing Committee meeting on March 8 said: “This is the kind of thing we have been asked for as an authority for many years,” adding: “I think this is something positive that we can demonstrate, that we can point to in terms of creating the jobs and the wealth that we discussed earlier.”
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