Solent Freeport

Freeports are special areas within the UK's borders where different economic regulations apply.

The Solent Freeport is one of 8 UK Freeports designated by the government following a bidding process.

We are members of the Solent Freeport Board.

Freeport tax sites give businesses operating within them access to certain tax benefits including enhanced capital allowances and stamp duty relief. One key benefit of the Freeport is the retention and reinvestment of business rates above a base level on tax sites for a period of 25 years from Freeport designation.

The majority of land which makes up the Solent Freeport tax sites is within the New Forest district. It is vital that we make a strong case to realise local benefit from the reinvestment of retained business rates, forecast to be in excess of £500m over the 25 years of the Freeport.

Our involvement in the Freeport process

We considered whether to support the proposal of the Freeport at various points during the last few years:

3 Feb 2021 Cabinet - Item 6 here: Agenda for Cabinet on Wednesday, 3rd February, 2021, 10.00 am Council Services (newforest.gov.uk)
19 July 2021 Council - Item 9 here: Agenda for Council on Monday, 19th July, 2021, 6.30 pm Council Services (newforest.gov.uk)
21 March 2022 Cabinet - Item 3 here: Agenda for Cabinet on Monday, 21st March, 2022, 10.00 am Council Services (newforest.gov.uk)
21 March 2022 Council - Item 4 here: Agenda for Council on Monday, 21st March, 2022, 6.30 pm Council Services (newforest.gov.uk)

The Freeport is a long term plan. We are currently considering what a positive legacy for the district looks like and will be developing a delivery plan to maximise local benefit in the months ahead.

At a meeting in April 2024, our Cabinet agreed that the delivery plan would focus on the following key priorities:

Transport/wider infrastructure
Employment and Skills
Prosperous Communities
Environmental Sustainability

The full business case for the Freeport and annexes can be viewed on the Solent Freeport website.

The potential impact of the Freeport

Above a certain base level, the business rates which result from investment on tax sites over the next 25 years will be retained and reinvested to support regeneration across the region.

How business rates are used will be determined by a sub-committee of the Freeport company.

The full business case for the Solent Freeport has indicated that retained business rates will be invested in the following ways:

Skills - 15% of available funding
Net Zero - 7.5%
Hotbeds of innovation - 7.5%
Regeneration and enabling infrastructure - 60%
Local investment priorities - 10%

Impacts for businesses

Growth at both Fawley and Marchwood Port provide the opportunity to deliver much needed additional employment floorspace within the District and provide real opportunity for residents to access training and job opportunities within a local area.

The Freeport will attract inward investors from a global market due to the incentives for growth through the Freeport policy levers.

Whilst these sites are 'planned growth' the fiscal incentives offered by the tax site status aim to encourage investment, particularly by the marine sector in need of deep-water access, bringing about accelerated delivery of this employment land and looking to reverse the decline in this sector.

Additionally a key strategic objective of the strategic approach to the Freeport is to develop a fully integrated multimodal transport strategy to improve connectivity across the Waterside area and with the wider region.

Businesses investing in designated tax sites and customs sites within the Freeport area will potentially benefit from the following:

Tax sites

Eligible businesses will have access tax reliefs including Business Rates, Stamp Duty, Employer National Insurance Contributions, and Building Allowance and Enhanced Capital Allowances (until 2026 at present).

Customs sites

Businesses operating within Freeport customs sites will have access to simplified customs arrangements

Whilst benefits are restricted to specific sites within the Freeport area, it is expected that investment in these areas will create opportunities, for example in terms of supply chain activity, to business across the district including our small and medium sized enterprises (SMEs) which make up the greatest part of our economy.