In amongst the packages of measures announced in the 2021 Budget, Liverpool City Region has been granted freeport status and the benefits could be monumental in terms of continued regeneration and growth. Other successful freeports are East Midlands Airport, Felixstowe and Harwich, Humber, Plymouth, Solent, Thames and Teeside.
The Liverpool City Region encompasses Liverpool, Halton, Knowsley, Sefton, St Helens and the Wirral. A Draft Local Industrial Strategy was published in March 2020 with a spotlight on the Maritime Sector, recognising the capabilities and heritage of Liverpool and its city-regions past.
It suggests using its biggest assets; its people, residents and economic communities, who have invested so much time and money in the Liverpool City Region. Embracing their innovative regeneration and intentions to continue to grow and utilise emerging technological advances must be accepted as part of the evolving community of the Liverpool City Region, alongside the other successful freeports.
When the government issued its consultation in October 2020 on freeports the Ministerial Foreward notes that:
“Most importantly, freeports will be a cornerstone of the government’s plan to level up opportunity across the country. So our criteria for allocating freeports will be geared towards areas of greatest need. This will allow us to drive forward investment and regeneration in some of the most deprived areas in the UK, delivering highly-skilled jobs for people across the country.”
The government wants to help development in the Freeports by:
- Implementing wider permitted development rights to better align ports with those available to airports and seaports, to allow the use of buildings for purposes connected with seaport services and other seaport related activities
- Encouraging local authorities to exercise their powers to grant Local Development Orders (‘LDO’) which are a kind of hybrid mechanism, half planning permission half permitted development right. Cheaper customs – with favourable tariffs, VAT or duties;
- Full relief from Stamp Duty Land Tax until 30 Sept 2026
- 20% Structures and Buildings Allowance for non-residential properties brought back into use before 30 Sept 2026
- Capital allowance of 100% until 30 Sept 2026
- Full Business Rates relief available to apply until 30 Sept 2026
- National Insurance relief from April 2022 until at least April 2026
- Infrastructure funding – to improve transport links
The government has committed to the long-term support of harbour development through its part in the Maritime Act 2050. This is supported by the National Policy Statement for Ports which records the need for new seaport infrastructure and provides the consenting framework for nationally significant port developments in England and Wales.
The next stage for the successful winners is to provide detailed business cases evidencing their proposed governance arrangements which must be signed-off by the government, with the intention of implementing the freeports by the end of this year.
Unsurprisingly large landowners and developers whose land falls within the area of the freeport designation welcome its status and the ‘freedoms’ it will bring with it. However, some local authorities whose boundaries are straddled by the freeport – Liverpool and Sefton boroughs – are sceptical and have been heard in the past opposing freeport resurrection.
Issues relating to environmental and social impacts relating to the ports have been raised in opposition to the benefits often highlighted.
It is difficult not to be buoyed by the winning of freeport status and its benefits. Although, as with most things, it will need to be carefully and sensitively balanced with many other factors, such Liverpool’s World Heritage Status (WHS), the UK’s Climate Change commitments, Air Quality targets, security, safety, workers’ rights, data protection, biosecurity and the environment.
There is a balance to be struck, but as with most things announced by the government when it comes to planning, the devil will be in the detail.
If you would like to speak to a planning law expert, Pamela Chesterman is on hand to answer your queries.
