Plans for Parskide’s Freeport Investment Fund set for green light
At its meeting later today, Wednesday, the council’s cabinet is being recommended to approve the establishment of it, for launch in 2024, once construction contracts are in place for the Parkside West development.
This follows the principles in the Retained Rates Strategy for the Freeport by Liverpool City Region to ringfence the collectable rates for the fund, according to a report to cabinet.
It states the Liverpool City Region (LCR) Freeport was approved by the Government in December 2022 and a Memorandum of Understanding (MoU) has been agreed between the Department for Levelling Up, Housing and Communities (DLUHC), LCR Combined Authority, St Helens Borough Council, Halton Borough Council, Wirral Council and the Freeport Management Board.
It adds: “At is meeting of 23 March 2022, cabinet approved the principles of an Investment Fund (the Fund) generated by collected rates from planned development at the Parkside Freeport Tax Site and the tiered structure for determining the projects for investment.
“St Helens Borough Council is a core partner to the LCR Freeport and is responsible for the collection of business rates within the Parkside Tax Site.
“This report sets out the basis for establishing and managing the retention of new business rates collected from the developments within the Parkside site.
“The Freeport tax sites are to be classed as a designated area with effect from 1 April 2023 for a fixed term of 25 years. The billing authorities will retain 100% of the collectible business rates in excess of the agreed baseline (which was zero for the Parkside designation).”
According to the report, the MoU states that the billing authorities will be “accountable” to DLUHC for the management of the retention of Business rates in line with the Local Government Accountability System, and be responsible for allocating all business rates collected on the Freeport tax sites to the “decision-making process and purposes outlined in the FBC and Retained Rates Investment Strategy”.
What are freeports?
Freeports are special areas within the UK’s borders where different economic regulations apply. B
The Government believes that by delivering investment on specific sites benefitting from tax and customs incentives, Freeports will create thousands of high-quality jobs in some of our most disadvantaged communities.
These sites have been carefully selected for their suitability for development by local authorities and key private partners and sit within an outer boundary, which represents the geographical location within which the benefits of Freeports are targeted and does not in itself confer any special tax, customs or other status.
Countries around the world have adopted Freeports or other kinds of Special Economic Zones (SEZs), but the government has worked in partnership with ports, businesses, local authorities, and wider stakeholders through a public consultation to develop a "highly ambitious" Freeports model for England.
The Freeports model will include a package of measures, comprising tax reliefs, customs, business rates retention, planning, regeneration, innovation and trade and investment support.
Eligible businesses in Freeports will enjoy a range of tax incentives, such as enhanced capital allowances, relief from stamp duty and employer national insurance contributions for additional employees.
These tax reliefs are designed to encourage the maximum number of businesses to open, expand and invest in our Freeports which in turn will boost employment.
Freeports will benefit from a range of customs measures, allowing imports to enter the Freeport custom sites with simplified customs documentation and delay paying tariffs.
This means that businesses operating inside designated areas in and around the port may manufacture goods using these imports, before exporting them again without paying the tariffs and benefit from simplified customs procedures.
Freeports will also aim to provide a supportive planning environment for the development of tax and customs sites through an extension of permitted development rights and incentivising use of local development orders.
The government will also support Freeports with innovation, with all businesses within Freeports able to access direct engagement with relevant regulators including the Freeport Regulation Engagement Network.