Rachel Reeves Will Not Announce New Freeports in Budget Despite Earlier Claims

Chancellor Rachel Reeves will not announce any new freeports in her Budget, despite an earlier government press release confirming plans for five more tax-free sites.
In what is understood to be a U-turn on freeport construction plans, the government is now expected to confirm funding for the “next steps” for five of the existing freeport locations.
Current freeports are located in 12 locations—eight in England and two each in Scotland and Wales.
Freeports are usually based at ports or airports. Existing UK freeports are located around ports in Inverness, the Forth, Teesside, the Humber, Liverpool, Anglesey, Milford Haven, Plymouth, the Solent, the Thames, and Felixstowe and Harwich.
Special customs facilities enable the freeports to import inputs tariff-free and pay tariffs on finished goods only when they are placed on the market. Other benefits include tax breaks on hiring new staff.
The government clarified on Sunday evening that the upcoming Budget will announce three freeports across five sites already in place, as reported by the PA news agency.
During his visit to Samoa on Oct. 25, Prime Minister Sir Keir Starmer responded to a question about the announcement of five new freeports.
Starmer said that he didn’t want to take an “ideological view” on freeports, just because they were introduced by the previous Conservative government.
He added freeports could work better, if local authorities and business get more involved. This aligns with Labour’s economic growth strategy, which it believes should be championed by regional powers.
However, critics suggest freeports will simply displace jobs, rather than create new jobs.
“The sums spent in tax cuts could be repurposed as direct capital investment in port infrastructure,” the campaign said.
Trade union Unite has cautioned that strong union action is necessary to prevent misuse of pocket tax cuts by corporate bosses and protect pay for workers.