During his budget announcement, Mr. Sunak revealed the locations of eight new “Special Economic Zones with different rules to make it easier and cheaper to do business”

So what are free ports, why is the Chancellor bringing them back – and where will they be in England?

They are also known as free trade zones and are designated areas in which the usual tax and customs regulations of a country do not apply

Goods in free ports can be imported, manufactured and exported without being subject to checks, paperwork or duties

For example, raw materials could be imported from abroad and processed into whole products for export overseas without incurring any fees

Tax would only be paid if the goods were to leave the free port and relocated to another location in the UK

There were seven free ports in the UK between 1984 and 2012, including Liverpool, Southampton, the Port of Tilbury, the Port of Sheerness and Prestwick Airport

Around 135 countries around the world have free trade zones, and a 2013 US Congress report estimated there were around 3 worldwide500 gives

The idea for free ports was originally launched as a post-Brexit opportunity to boost world trade and create opportunities in the UK, as part of the government’s plans for a “leveling-up”

The ministers hope that the new free ports will help regenerate disadvantaged areas in the country

Mr. Sunak said the free ports had “easier planning”, “cheaper tariffs – with cheap tariffs, VAT or tariffs” and lower taxes with “tax breaks to encourage construction, private investment and job creation”

Companies within the new locations receive temporary tax breaks, which usually last for five years

This includes discounts for tax authorities who pay for existing property and for buying new buildings

While some say that free ports can help boost manufacturing, jobs and investment in poorer areas, critics claim that they fail to promote overall employment and the relocation of economic activity from one area to another Taxpayer costs

Governments in Scotland, Wales and Northern Ireland are expected to post their own free zone policies

The offers were evaluated on the basis of various factors, including how a free port can bring economic benefits to poorer regions

Prime Minister Boris Johnson previously outlined his plans to “upgrade” deprived places in the UK

Other criteria, such as the impact of the coronavirus crisis on local areas and ensuring that free ports are “fairly distributed” across the country, were also examined

The Teesside Free Port will cover an area of ​​4500 acres to be the largest – that’s 2550 soccer fields

What is a free port?

World News – UK – Free ports are being created in England to stimulate the economy – this is how they work

Source: https://www.yorkshirepost.co.uk/business/freeports-uk-what-is-a-freeport-how-do-the-free-trade-zones-work-and-where-are-the-new-locations-in-england-3153473