By Oliver Sowton, Partner – Blake Morgan
Late in 2022, the Solent Freeport was announced as one of the first UK Freeports to be fully approved by Government, following a strong business proposal, achieved through public and private partnership and collaboration.
The Government intends Freeports to be national hubs for global trade and investment across the UK. Their vision is of a location for value-added manufacturing and economic activity which will promote regeneration and job creation, and drive innovation within and beyond the Freeport. The initiative is a component for their post-Brexit plan for driving growth through incentivising high-value manufacturing and export
This final approval follows formal Government designation of the tax sites within the Solent Freeport, offering occupiers business rates relief and other incentives to support capital investment, skills and employment. Business rates growth generated at the tax sites can be retained locally and reinvested in the area for projects such as transport links, digital infrastructure and skills development.
This new Freeport status further enhances the Central South’s geographical significance as the world’s gateway to the UK. With the region’s unique collection of assets: water frontage, national parks, historically significant cities and transport links to the whole of the UK, the opportunities created for new business and trade into the region are highly sought after.
“If the Solent Freeport wins, we all win”
Law firm Blake Morgan together with regional thinktank, the Southern Policy Centre, hosted a round table discussion with the region’s key business and stakeholder community to discuss their aspirations for the Solent Freeport. This discussion is part of a report commissioned by Blake Morgan, exploring how the Central South’s economy can benefit from the Solent Freeport.
Port of Southampton © ABP Southampton
There is an expectation that the Solent Freeport will attract £1.35 billion private sector investment in the area, plus an additional £1.75 billion GVA forecast to be generated for the UK as a whole because of the Solent’s strong existing trading links. The Solent LEP, which led the original bid, has spoken of “the benefit [the Freeport will bring to] local businesses and communities”. Their statement highlighted they expect to see “local communities – and in particular our young people – [benefitting] from the opportunities created”.
That enthusiasm for wider local benefits is reflected in the support the Solent Freeport has enjoyed from businesses and organisations across the region. It is demonstrated in the make-up of the Freeport Board, which represents a diversity of local councils and business organisations. But our round table participants agreed that those benefits will not arise without a clear, shared vision for how the Central South can capitalise on this significant opportunity.
All agreed that the collaboration involved in achieving early approval of Freeport status will be equally crucial in ensuring the opportunities of that status are realised, creating a legacy that lasts far beyond the short-term tax incentives. This research will explore some of the direct and indirect benefits the Solent Freeport offers in the Central South, and how our businesses and stakeholder organisations are best placed to respond to them. The full report will be available on the Blake Morgan website: www.blakemorgan.co.uk/solentfreeport
To find out more information about the research contact: Rebecca Whitehead, Rebecca.Whitehead@blakemorgan.co.uk.
SOLENT FREEPORT INVESTMENT ALREADY UNDERWAY AT KEY LOCATIONS INCLUDES:
- Investments at the ABP Port of Southampton to enhance operational efficiency and capacity including new warehouse and distribution units; container storage areas; HGV driver welfare facilities; improved marine access as well as enhanced rail provision.
- New 500,000 sq ft of business space at Navigator Quarter, adjacent to the runway at Southampton Airport, and part of a 75-acre site as part of the Solent Freeport.
- Three new Grade A specification buildings already under construction at Dunsbury Park, a 100-acre business park which is home to the global headquarters of several international companies.
As featured in Central South’s PROSPER Magazine – download the full magazine here.
