East Midlands Freeport has formally opened for business, allowing companies within its borders to benefit from its tax incentives, fewer customs restrictions and simpler planning regulations.
The low tax area is one of the last around the 海角视频 to go live and the only one based inland, away from traditional sea ports.
It incorporates 1,300 acres across three main sites – East Midlands Airport (which is already the 海角视频’s biggest dedicated cargo airport) and the industrial developments around it; the Ratcliffe on Soar power station site, which is a due to be redeveloped after 2025; and the 5.2 million sq ft East Midlands Intermodal Park near Toyota in Derbyshire.
The long-term aim is to support more than 61,000 jobs in the region and deliver a regional uplift to the East Midlands economy of £8.4 billion.
The freeport management team has now revealed that Space Park Leicester – the high-tech University of Leicester-backed R&D hub on the northern outskirts of the city – will also be included as the freeport’s first customs site.
It means companies with operations there, which already include Rolls Royce and Airbus, will be able to bypass some of the normal customs rules if they import parts for their manufacturing processes prior to exporting the finished products.
The 海角视频’s seven new freeports were created with the backing of Rishi Sunak and have three main objectives – to establish national hubs for global trade and investment, create innovation hotbeds, and promote regeneration.
Tax benefits include a zero rate of secondary national insurance for workers within the areas, enhanced capital allowance for plant and machinery, enhanced structures and buildings allowance, and relief from both stamp duty land tax and business rates.
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East Midlands Freeport chair Nora Senior CBE said the green light meant the area could now access £25 million of upfront government support for infrastructure and investment projects including new roads, transport infrastructure and a Hydrogen Skills Academy.
Ms Senior said: “East Midlands Freeport is potentially one of the biggest wealth creators we can have within this region.
“Business rates the occupiers pay will be retained locally by the local authorities to reinvest in local areas – such as growth projects, regeneration projects and infrastructure – which will benefit our towns our cities and our communities. That is hundreds of millions of pounds, which will be retained within the region.”
Reflecting the nature of industries based within the freeports borders – which include Toyota, the Ratcliffe on Soar power station site, East Midlands Airport, the SEGRO Logistics Park East Midlands Gateway and Space Park Leicester – the freeport will focus on low carbon and renewable energy, advanced manufacturing, automotive, space applications, advanced logistics and research and development.
When the power station site is redeveloped, for instance, it is hoped to become home to a giga-factory, potentially making power units which use low carbon hydrogen.
Freeport chief executive Tom Newman-Taylor said: “The Freeport represents a massive opportunity for the East Midlands.
“We can now set about delivering on our core objectives: to drive up low-carbon investment and innovation in the region – boosting jobs, skills and wages for the communities we serve.”
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Space Park Leicester executive director Professor Richard Ambrosi said: “The establishment of the East Midlands Freeport and customs site operator at Space Park Leicester represent a significant step in the development of a Space Cluster and space ecosystem in the region.
“These initiatives will have an impact in attracting inward investment and boosting export opportunities. We look forward to working with our East Midlands Freeport partners, Leicestershire County Council and Leicester City Council in realising the full potential of this initiative."