Up to 10 ‘free ports’ to open across UK after Brexit under new government plans

Ministers claim policy will create thousands of jobs but critics say it is a ‘race to the bottom’ that will benefit ‘money launderers and tax dodgers’

Up to 10 so-called free ports will be established in the UK after Brexit under new plans unveiled by the government.

Shipping ports and airports across the UK will be invited to bid for “free port” status after Britain leaves the EU, in line with a pledge made by Boris Johnson during the Tory leadership contest.

Liz Truss, the international trade secretary, claimed the move would create thousands of jobs and boost economic growth.

But Labour warned that it would be the beginning of a “race to the bottom”.

Free ports are areas of the UK that are outside the country’s customs territory, meaning goods can be manufactured, imported and exported inside the zones without incurring tariffs.

Mr Johnson pledged during the Tory leadership campaign to introduce “about six” free ports once Britain has left the EU.

Ms Truss announced that the government had since expanded the plan and wanted to establish up to 10 free ports. She has appointed an advisory panel to bring together ministers and experts to help deliver the proposal. Several of the advisers have previously warned about the impact of a no-deal Brexit – something Mr Johnson and his senior ministers have repeatedly threatened to deliver.

Ms Truss said that creating free ports would have a similar impact to the 1980s policy of designating London’s Docklands as enterprise zones in order to boost regeneration efforts.

Announcing the move ahead of a visit to Teesport on Teesside, which is a possible candidate for becoming a free port, Ms Truss said: “Freedoms transformed London’s Docklands in the 1980s, and free ports will do the same for towns and cities across the UK. They will join onshore enterprise and manufacturing as the gateway to our future prosperity, creating thousands of jobs.

“We will have a truly independent trade policy after we leave the EU on October 31. I look forward to working with the Freeports Advisory Panel to create the world’s most advanced free port model and launch the new ports as soon as possible.”

Ministers hope that free ports will help boost the UK’s trade with the USA and developing countries in Asia.

The government pointed to the fact that the US has over 250 free trade zones, employing 420,000 people.

Rishi Sunak, the chief secretary to the Treasury, said: “We are exploring free ports as an innovative way to drive growth and support thousands of high-skilled jobs across the UK.

“We will focus on those areas that could benefit the most, as we look to boost investment and opportunity for communities across the country.”

But critics said that free ports would benefit “money launderers and tax dodgers”.

Barry Gardiner, shadow international trade secretary, said: “This is not new investment and growth. It is a race to the bottom that will have money launderers and tax dodgers rubbing their hands with glee. Free ports and free enterprise zones risk companies shutting up shop in one part of the country in order to exploit tax breaks elsewhere, and, worst of all, lower employment rights.

“The British people did not vote for this new administration and they certainly did not vote to see their jobs and livelihoods threatened in favour of gifting further tax breaks to big companies and their bosses.”

The People’s Vote campaign also criticised the policy.

Labour MP Owen Smith, a supporter of the campaign, said: “Creating a legal on-shore tax haven is more likely to suck away jobs. If that happens at any scale it is likely to undermine the public finances and ultimately lessen the money available to fund the police, schools and hospitals.

“Free ports will do nothing to address the multitude of supply crises that no deal will create. Free ports do not make it easier or faster to get vital medicines or food or chemicals into the country. Free ports do not solve the problems of the Northern Ireland border, nor do they stop goods on our supermarket shelves being hit with import taxes.

“Free ports do, though, offer great new opportunities to anyone who wants to avoid customs checks while they store goods. One industry could indeed boom – self-storage for art thieves.”