Solent Freeport was one of eight UK ports to be granted Freeport status by Government in March 2021.
The plans, which have the potential to unlock billions of pounds worth of investment and create thousands of jobs, will form a vital part of the UK’s post-Covid economic recovery, transforming economic prospects for the Solent region.
For a Freeport to be considered formally designated, it requires a host of Government approvals, including an Outline Business Case (OBC), Full Business Case (FBC), and proposed tax and customs sites.
Several tax sites have already been identified for Solent Freeport, including Dunsbury Park, part of the Portsmouth Gateway Cluster owned by Portsmouth City Council, and Fawley Complex, Fawley Waterside, Marchwood Port and Redbridge in Southampton.
According to Portsmouth City Council, tax incentives at Dunsbury Park will include 100% business rate relief for 5 years, enhanced capital allowances, leasehold stamp duty tax reliefs and 3 years employers NI relief.
Regional Managing Partner for the South Coast, Gary Jeffries, commented:
“Today marks an important milestone in a project which is set unlock billions of pounds’ worth of investment in the Solent region, create tens of thousands of new jobs and level up our important coastal communities here.”
The Solent already contributes £31bn to the UK economy each year. Freeport status will add a further £3.57bn to UK plc through GVA uplift, including £1.97bn in direct GVA in the Solent. It is also expected to attract an estimated £2bn of extra private and public sector investment and create 26,000 new jobs within the region.
“We wholeheartedly support the ambition of this project, which many in the property industry will hear more about at MIPIM this week. The Freeport is the key to the region’s competitive advantage and will act as an invaluable point of differentiation from other parts of the country,” continued Gary.
“Together with a very clear Trade and Investment Strategy for delivering on the Solent Freeport’s potential, we will see significant inward investment, as well as business support packages to help the region’s businesses access new markets and international supply chains.”
Since the announcement of Solent Freeport in 2021, ports at Southampton and Portsmouth have already reaped the benefits of significant new investment.
In June 2021 DP World announced a £40m investment package at Southampton port – Britain’s second largest container terminal – to transform it into a premier international freight and logistics hub. Later that year, £11m in levelling up funding was announced to transform Portsmouth International Port.
Meanwhile, property consultancy Vail Williams is reporting a flood of investor and developer enquiries, as Gary explains:
“We are also getting lots of calls from investors and developers ostensibly because of the Solent Freeport designation and what might come out of that. The benefits go far beyond attracting occupiers to the various tax sites and we expect to see an occupier demand ripple effect.
“Investors are attuned to this and are starting to gear up to invest in sites around Portsmouth and Southampton. This may result in rental growth, continued yield compression and investment price growth which is a positive story for the market.
“The Solent, with its reputation for R&D and access to skills, talent and technology, has a positive track record in translating innovation into commercial success.
“We are already starting to see this translate into occupier interest, particularly in high growth sectors such as marine manufacturing and green energy, as the region gears up to take advantage of trade opportunities in growth markets such as China, Japan and Germany.”
Concluding, Gary added: “The Freeport together with Southampton’s UK City of Culture 2025 bid and plans to develop Solent’s major cities, makes it an incredibly exciting time for the region, which will see jobs created, homes developed and economic prosperity for the businesses and people based here.”
