Successful freeport bid would make South Yorkshire ‘largest advanced manufacturing hub in Europe’

South Yorkshire politicians and business leaders have submitted a bid for a large part of the region to become a freeport – a zone which brings tax and customs benefits.
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Backers and likely benefactors if successful include Sheffield Forgemaster, Doncaster Sheffield Airport, Liberty Steel in Stocksbridge and Rotherham, McLaren Automotive and various other advanced manufacturing enterprises across the region.

New modelling suggests a freeport in the South Yorkshire could:

● Create 28,700 new jobs

South Yorkshire politicians including Sheffield City Region mayor Dan Jarvis and Doncaster mayor Ros Jones have submitted a bid for a large part of the region to become a freeport - a zone which brings tax and customs benefits.South Yorkshire politicians including Sheffield City Region mayor Dan Jarvis and Doncaster mayor Ros Jones have submitted a bid for a large part of the region to become a freeport - a zone which brings tax and customs benefits.
South Yorkshire politicians including Sheffield City Region mayor Dan Jarvis and Doncaster mayor Ros Jones have submitted a bid for a large part of the region to become a freeport - a zone which brings tax and customs benefits.
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● Increase wages by at least east 19 per cent due to a focus on advanced manufacturing

● Add £169m to the South Yorkshire economy every year

● Boost imports by £306m and exports by £410m

● Unlock or accelerate over £500m of investment

The Freeport zoneThe Freeport zone
The Freeport zone

● Transform the Sheffield City Region into a net exporter of goods by 2029

The freeport itself centres around Doncaster Sheffield Airport and the iPort logistics hub as well as major manufacturers with more than 360 hectares of land primed for development at GatewayEast, Junction 36 and iPort.

Business bosses say the bid will make South Yorkshire the ‘largest advanced manufacturing hub in Europe, putting the area at the heart of world-class innovation’.

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Freeports are ports – either inland or coastal – where normal tax and customs rules do not apply. Freeports are similar to free zones or ‘enterprise zones’, specifically targeted at those businesses who import, process and re-export goods.

Ros Jones, Mayor of Doncaster. Picture: Marie CaleyRos Jones, Mayor of Doncaster. Picture: Marie Caley
Ros Jones, Mayor of Doncaster. Picture: Marie Caley

Tax benefits include business rate relief of up to 100 per cent on certain business premises for up to five years, employer National Insurance Contribution relief at 0 per cent up to £25,000 for three years per employee at nines years total

Customs benefits include simplified import procedures and can receive duty exemptions where no duty is paid on goods that are imported into the freeport, processed or manufactured into something else, and then exported again.

Sheffield City Region mayor Dan Jarvis said: “Establishing a freeport will help our region’s businesses and universities export ideas, goods and services across the world, supporting our ambitions for a new era of prosperity and a stronger, greener and fairer economy for South Yorkshire after the coronavirus pandemic. It will help to unlock our region’s potential and create opportunities for people, places and businesses.

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“Our region has incredible strengths in research and innovation and businesses capable of substantial growth. Government must now back our bid to establish a freeport to generate the jobs, training and investment needed to deliver prosperity for people and businesses across the region and the North.

“This is an opportunity for Government to show its commitment to levelling up and unlock South Yorkshire’s potential.”

Other benefits include duty deferral, import VAT suspension and tariff/duty inversion where products are imported, transformed, and the final product has a lower duty rate.

If the bid is successful, South Yorkshire will become one of ten new freeports across the UK. Once established the freeport will aim to build on South Yorkshire’s ‘long standing reputation for innovation and excellence’ and further establish the region as a hub for global trade and investment.

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Doncaster mayor Ros Jones, said: “Securing this Freeport in Doncaster will be a boost for the borough and South Yorkshire. It will complement our world-class ambitions to drive the borough onwards and upwards supporting business and trade and stimulating swathes of new jobs and significant levels of new investment.

“The economic benefits will be immense with the bottom line being more high quality, high value jobs for local people. Together with the rest of South Yorkshire we will be urging the Government to back our bid.”

Jon Ferriman, managing director of Liberty Steel UK added: “The Freeport will allow us to grow our exports, supercharge innovation and build the businesses of the future.

“Our existing advanced manufacturing base of course already includes names like Sheffield Forgemasters, Liberty Steel and Boeing, but we have the potential to go so much further.

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“We are determined that more well paying jobs in advanced manufacturing come to South Yorkshire and the Freeport is the way to do it.”

Robert Hough, chair of Peel airports group which includes Doncaster Sheffield Airport said: “Ports and airports are well known as hubs for global trade and investment.

“Freeport status would only enhance that. By bringing together the UK’s first strategic rail port for a decade at iPort and one of the longest runways in the UK with capacity to grow at Doncaster Sheffield Airport.”

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In these confusing and worrying times, local journalism is more vital than ever. Thanks to everyone who helps us ask the questions that matter by taking out a digital subscription or buying a paper. We stand together. Nancy Fielder, editor.