Solent and South Devon Freeports fully approved by government

More than a year and a half after it was shortlisted, the UK government has today (7 December) fully approved the Solent Freeport.

It is one of three new freeports – areas within the UK’s borders with different economic regulations – to be approved, joining Plymouth and Teeside. The announcement comes after the government formally designated the tax sites within the Solent Freeport.

In these tax sites, occupiers benefit from business rates relief along with other incentives, with the aim of boosting capital investment, skills and employment. It also allows the business rates growth generated to be retained and reinvested in the area.

The Solent Freeport is expected to attract around £1.35 billion of private sector investment which, combined with the Solent’s pre-existing trade links, is forecasted to generate approximately £1.75 billion GVA for the UK. It is also expected to create around 15,000 jobs in the area, and another 15,000 around the country.

Brian Johnson, Chair of the Solent Freeport, said: "This is the news we've been looking forward to and I'm grateful to our partners across the public and private sectors for their commitment and vision in bringing about a freeport for the Solent which will benefit our communities for generations to come. 

“The strong business case we put forward, achieved through collaboration and partnership working, led by the Solent Local Enterprise Partnership particularly in the set-up phase, has resulted in the Solent Freeport being one of the first officially designated by Government. 

"The Solent Freeport really is a once-in-a-generation opportunity - an investment in our future which will ensure local people benefit from job creation and increased prosperity, regenerating our communities." 

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The formal designation means that the investment already underway at the Solent Freeport will now be accelerated and enhanced.

This includes a package of investments at the ABP Port of Southampton to boost efficiency of operations and capacity, including new warehouses and distribution units, additional storage area for containers, welfare facilities for HGV drivers, and improved marine access and rail connection, improving the Solent Freeport’s links to the wider country.

In the Navigator Quarter, 500,000 square feet of new business space is being created, delivered by AGS airports in partnership with blocwork, which is aiming for completion in 2024. Phase one of this is expected to contribute £120 million GVA to the UK economy.

At the 100-acre Dunsbury Park business park, which already houses the global headquarters of some international companies, three new Grade A specification buildings are being delivered, ranging from 19,000 to 33,000 square feet.

Levelling Up Minister Dehenna Davison said: “Today is a historic day for many port towns and coastal communities, as the Solent Freeport takes flight.  

“This Freeport is going to give local economies a shot in the arm and unlock a new state of the art business space and create tens of thousands of highly skilled jobs.”

Brian Johnson concluded: "The Solent Freeport will bring opportunities throughout our region and, most importantly, to our young people.

“We will see investment in high quality employment and state-of-the-art growth sectors while partnerships with our three world-class universities and research assets are set to catalyse an innovation revolution in maritime, autonomy and green growth.

“We will continue to work with partners on any future incentives that have the potential to unlock investment and create jobs and prosperity in the Solent." 

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Further along the South Coast, the Plymouth and South Devon Freeport has also been approved. It sees Plymouth City Council, South Hams District Council and Devon County Council working alongside Babcock, Princess Yachts, Carlton Power, the Sherford Consortium and a number of stakeholders including the Universities of Plymouth and Exeter, Plymouth port operators, skills providers and the Heart of the South West LEP.

Here, the freeport is expected to allow new employment land at three sites to be bought forward, to accelerate the formation of advanced, low carbon manufacturing clusters in marine, defence, and space sectors, to provide a major expansion plan for Princess Yachts and support a new £30 million Innovation centre at Oceansgate.

The Freeport is also expected to attract millions of pounds in investment, including leveraging £250 million of private sector investment, a seed capital grant of £25 million for essential infrastructure from the government and £29 million from local councils, along with delivering more than 3,500 jobs.

Leader of Plymouth City Council, Richard Bingley said: “The Freeport will deliver 3,500 well paid jobs and provide a free trade hub which will include advanced manufacturing and IT for Plymouth and South Devon.

"It’s putting this area on the map for foreign investment and attracting businesses to relocate here. This is a huge deal for this city and the wider region and I’m really excited about the opportunities it will create for our residents and our businesses.”

David Lockwood, Chief Executive, Babcock said: “Babcock welcomes the UK Government’s designation of the Plymouth and South Devon Freeport. As a major employer in the region, we have actively supported this business case, which firmly aligns with our long term commitment to the area.”

“The Freeport will bring significant opportunities and potential employment to the South West of the UK, and we are delighted to be part of this through our dedicated support to the Royal Navy, continued investment in our facilities and delivering wider economic benefits through our supply chain.”