To seek Cabinet’s, in principle, approval of the Freeport East Retained Business Rates Agreement, acting as the Billing Authority, in line with the Council’s ‘Freeport East Policy for Managing Retained Business Rates’, and to set out the next steps to finalise the Agreement.

To ask Cabinet, acting as Founding Member, to approve the Freeport East Ltd Annual Business Plan for 2025/26, as required by the Members’ Agreement.

RESOLVED that Cabinet –

(a)        in its role as Billing Authority, notes the progress made to date to complete the Freeport East Retained Business Rates Agreement, and agrees the approach as proposed in Appendix A to the Leader of the Council’s report (A.1);

(b)        authorises the Deputy Chief Executive and the Section 151 Officer to approve and sign the final Freeport East Retained Business Rates Agreement in line with the Council’s Freeport East Policy for Managing Retained Business Rates and Freeport East Policy for Granting Non-Discretionary Domestic Rates Relief; and

(c)        in its role as a Founding Member, and in accordance with the Members’ Agreement, approves the 2025/26 Freeport East Ltd. Annual Business Plan.

Cabinet considered a report of the Leader of the Council (A.1) which: -

(1)     sought Cabinet’s, in principle, approval of the Freeport East Retained Business Rates Agreement, acting as the Billing Authority, in line with the Council’s ‘Freeport East Policy for Managing Retained Business Rates’, and to set out the next steps to finalise the Agreement; and

(2)     requested Cabinet, acting as a Founding Member, to approve the Freeport East Ltd. Annual Business Plan for 2025/26, as required by the Members’ Agreement.

Freeport East Retained Business Rates Agreement

Cabinet was aware that Freeport East was a Government backed hub for investment, trade and innovation. It was central to the Government’s agenda for driving clean growth, promoting regeneration and job creation. Freeport East included the Port of Felixstowe, Harwich International Port, and the Gateway 14 business park 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.

Members recalled that Freeport East Ltd had been incorporated as a Company Limited by Guarantee in December 2022. It had been established by a range of local public and private partners, including Tendring District Council, to act as the main counterpart to Government for delivery of the freeport policy for Freeport East.

Cabinet was reminded that Freeport East, in consultation with partners, had developed a ‘Local Growth & Investment Strategy’ (formerly the Retained Business Rates Strategy) that set out how Freeport East would pool, allocate, spend and monitor the retained business rate income that was collected on the freeport tax sites over the next 25 years. This included the company’s operational costs.

That Strategy had been approved by the Board in March 2024 and fully reflected decisions made by Tendring District Council in relation to Business Rates usage. To achieve the site developments envisaged in the Full Business Case, 70 per cent of the total retained Business Rates from the Harwich tax site were planned to be allocated to support the further development of the Harwich tax site to achieve the outcomes of the Green Energy Hub. As a result, the Freeport East’s ‘Local Growth & Investment Strategy’ aimed to align with the Council’s ‘Freeport East Policy for Managing Retained Business Rates’, approved by Cabinet in January 2023.

Members were advised that, separately, the Billing Authorities, which included Tendring District Council, had decided a ‘Retained Business Rates Agreement’ was required to be put in place to ensure there was clarity around forecasting, collection and management of Business Rates funds in a manner that was consistent with the Local Growth & Investment Strategy.

It was reported that the Freeport East Accountable Body, East Suffolk Council, had instructed legal firm Browne Jacobson to prepare the Retained Business Rates Agreement for Freeport East (Appendix A to the Leader’s report) on their behalf. On 14 March 2025 Browne Jacobson had circulated a draft document for partners building on the Local Growth & Investment Strategy. 

It was noted that this document  ...  view the full minutes text for item 22