SIR KEIR Starmer will give the go-ahead to five special economic zones – once labelled a “Brexit benefit” by the Tories to drive growth and jobs.
The Prime Minister has given his backing to the new wave of ‘freeports’ which attempt to encourage business to the low tax areas.
Keir Starmer will give the go-ahead to five special economic zones[/caption]
They were first established by Margaret Thatcher and then championed by Rishi Sunak who introduced eight hubs across the country.
It’s expected the five zones will be formally named in the Budget next week by Chancellor Rachel Reeves.
There will also be confirmation of a new investment zone, where the government ploughs in cash, in the East Midlands to catalyse growth and investment.
But Sir Keir says he is bringing them “with no ideological lens” despite being a Tory initiative.
Along with the freeport and investment zone initiatives, there will be a growth plan drawn up for every area by mayors and local authorities in partnership with local business groups.
Sir Keir said: “Targeted programmes that attract investment and generate jobs and growth for local people, underpinned by our industrial strategy, and the economic stability my government brings, will turbocharge the potential of areas across the country.
“I have always said I will look at whatever will deliver for working people, with no ideological lens.
“So yes freeports were a scheme we inherited, but when combined with Labour’s laser focus on growth generated from the ground up, we will maximise their potential.
“My government is rewiring how and where growth is generated to secure investment and create good jobs for working people.”
Freeports have so far attracted £2.9 billion of investment and created around 6,000 jobs.
Whitehall officials say Investment Zones in England have estimated to have created 89,000 additional jobs.
Ex-PM Margaret Thatcher first introduced the idea of freeports back in the 1980s but they lapsed under David Cameron’s government in 2012.
The idea was picked up again by Rishi Sunak who brought them back as Chancellor in 2021.
The zones were typically based around cargo ports such as Hull, Southampton and Plymouth.
They benefited from tax breaks including no stamp duty, rebates on constriction investment and five years of zero business rates.
Back in May 2023, the ex-PM said: “I introduced freeports – a Brexit benefit around the country attracting jobs and investment to lots of different places.”
