A full business case for Plymouth’s tax-break freeport is due to be submitted to the Government in April explaining how it aims to create 3,500 jobs and pump £400m into the region’s economy.
The Plymouth and South Devon freeport is expected to provide thousands of direct jobs across Plymouth, Devon and the South Hams and see £100m invested in its first two years.
It is intended to bring forward land for development which might otherwise have taken years longer, welcome new businesses to the area and attract foreign direct investment opportunities.
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More about Plymouth's freeport
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By securing investment in innovation, skills, research and development, it is intended to enable Plymouth to develop a global reach, whilst supporting its commitment to clean growth and carbon net zero.
A freeport is a designated area within 海角视频 borders where different economic regulations apply, encompassing tax reliefs, customs advantages, business rates retention, planning, regeneration, innovation and trade and investment support.
Three key sites in and around Plymouth have been earmarked to form part of the freeport making more than 130 hectares of land available. They are:
South Yard – in addition to the existing Oceansgate complex, this area will be further developed as a “tax site” and will include a new innovation centre, a mobility hub and new factory developments.
Langage – developed as a “tax site” with a customs zone within it and space for light industrial units for high-value engineering and manufacturing. The main focus will be marine, defence and space. The site also includes proposals for a green hydrogen electrolyser plant.
Sherford – developed as a logistics hub with a tax and customs boundary with warehousing storage and engineering space.
Existing businesses can apply if they can show that locating within the freeport would help them grow and generate economic growth provided their plans cannot be accommodated at their existing location.
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They can also expect to benefit from growth in local demand for services and supplies generated by the freeport.
Total capital investment in the freeport is predicted to reach £31m. This is made up of £25m in Government seed capital grant and matched locally with £29m. A further £10m will be raised through Levelling Up grant income and it is anticipated that total private sector investment will be close to £247m.
Public and private sector organisations including Babcock International, Princess Yachts, Langage Energy Park Ltd, the Heart of the South West LEP, the Universities of Plymouth and Exeter, the Ministry of Defence and port operators, have worked closely together to finalise the full business case.
The three councils involved in the Plymouth and South Devon freeport - Plymouth City Council, Devon County Council and South Hams District Council - are now due to meet to consider the full business case ahead of its submission.
The freeport is expected to see:
3,584 direct jobs created with an average wage of at least £13.92 per hour
10% of jobs created to be filled by inactive claimants and registered unemployed
3,000sq m of skills infrastructure
2,400sq m of new innovation space
137.9 hectares of land developed
Five new businesses each year
Two to three new foreign direct investment each year
40 business/higher education collaborations a year from 2022
£4m a year in private investment in research and development
10 new products developed for market.
Plymouth City Council’s cabinet is asked to delegate authority to the leader of the council to give final approval to the full business case. On successful submission to the Government in April, it is expected that the freeport will become operational in summer 2022.
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Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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Nick Kelly, leader of Plymouth City Council, said: “We are only one of eight areas to get freeport status and we see this as a brilliant catalyst to build back better and drive economic growth. It’s also a chance to showcase our strengths in the marine and defence sectors to the rest of the country, the world, and to support the growing space sector. We have the commitment of some of our largest local employers, including Babcock and Princess Yachts, as key partners in the freeport. Additionally, the freeport is also about the long term prospects for up-skilling our future workers, making sure there are great job prospects for tomorrow’s workforce.”
Judy Pearce, leader of South Hams District Council, said: “The freeport is an excellent example of local authorities working together without borders to provide long term benefits for the whole region. Together we aim to secure the freeport to provide more jobs, opportunities, skills where it is needed, foster innovation and capitalise on our strengths. Ensuring that current and future generations of the workforce can secure prosperous careers has never been as important.”
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