Issue - meetings

To ask Cabinet to support the submission of the Freeport East Full Business Case, to approve the Council’s participation in the governance of Freeport, the approach to business rate retention set out in the report, and to recommend to Full Council seeking approval that Freeport East is consistent with the Council’s priorities and policy framework as set out in the Corporate Plan 2020-2024, in particular a growing and inclusive economy.

That Cabinet -

a)     formally supports the Freeport East Full Business Case to be submitted by East Suffolk District Council to the Government;

b)     agrees to the approach to local business rate retention, as set out in the Full Business Case and summarised in the Leader’s report;

c)      agrees that the Leader of the Council and Officers can participate in the governance proposals set out in the Full Business Case on the principle that Tendring District Council becomes a member of the body set up to govern the Freeport;

d)     notes that any decision to formally become part of the governing body will be taken by the Leader of the Council, in accordance with previous delegations, following consultation with his Portfolio Holder Working Party;

e)     approves the Leader of the Council appointing a Member representative to that governing body;

f)       assigns £160,000 to pay for projects in support of Freeport East to be agreed through the Freeport governance structure and notes that the Full Business Case sets out the expectation that this sum should be repaid to the Council from future retained business rates; and

g)     recommends to Full Council that Freeport East be confirmed within the Council’s Budget and Policy Framework, and included as part of the Corporate Plan 2020-2024, as previously adopted by Full Council.

Cabinet gave consideration to a detailed report of the Leader of the Council (A.8) which sought its support for the submission of the Freeport East Full Business Case; to approve the Council’s participation in the governance of Freeport; the approach to business rate retention set out in the report; and to recommend to Full Council that it confirms that Freeport East is consistent with the Council’s priorities and policy framework, as set out in the Corporate Plan 2020-2024, in particular, a growing and inclusive economy.

It was reported that, on 13 December 2021, the outline business case had been formally approved by Government and that the three tax sites in Felixstowe, Harwich and at Gateway 14 near Stowmarket had been agreed, published on GOV.UK and the necessary Statutory Instruments laid to enshrine them in legislation. 

Freeports

Members were reminded that the Government aim for Freeports was to attract businesses that imported, processed and add valued to goods, and then to re-export those goods. At a Freeport, imports could enter certain sites with simplified customs documentation and without paying tariffs. Businesses operating inside designated areas in and around the port could then manufacture goods using the imports and add value before exporting them, again without full tariffs or customs procedures. If the goods moved out of the Freeport into another part of the UK, then they had to undergo the full import process, including paying any tariffs.

It was proposed that Freeports would be part funded by retained business rates, which was the share of business rates retained by central government.  Government had proposed that, for Freeports, the retained business rate scheme would offer the opportunity for billing authorities to retain more business rates than they otherwise would have.  This was effectively extra funding for the area.  Money would be available to be spent supporting the development and delivery of the Freeport sites themselves, and to deliver on the wider Freeport policy objectives of improving infrastructure, skills, innovation, investment, trade and net zero initiatives, benefiting residents in the area surrounding the Freeport, including almost all of the District of Tendring.

Freeport East

Cabinet was aware that Freeport East was based around the Port of Felixstowe and Harwich International Port, and included the Gateway 14 Site in Stowmarket, Suffolk.  It comprised 275 hectares of space and facilities across three sites eligible for tax relief (”Tax Sites”) at Felixstowe dock, Bathside Bay in Harwich, and Gateway 14 in Stowmarket.  Those sites were also eligible for customs duty relief, and there were four additional sites also eligible for customs reliefs (“Customs Sites”). 

Members recalled that the Harwich Tax Site was intended to be developed as a Clean Energy Hub and thereby create 1,900 jobs. The tax site was largely comprised of areas to be reclaimed from the sea in order to provide a development platform.  Significant third party funding in the region of £80m would be required for this site in addition to funding from the Port, the potential future users of  ...  view the full minutes text for item 151