Humber Freeport projects in North East Lincolnshire to get ?15m government investment
Three projects associated with Humber Freeport will get £15m government investment between them.
North East Lincolnshire Council[1]‘s cabinet agreed earlier this month to invest £15m seed capital for Humber Freeport in three schemes within its local authority area. The creation of flexible workspaces in Pioneer Business Park, an industrial decarbonisation centre in Stallingborough[2], and wastewater infrastructure near Grimsby[3] is to get the cash.
The freeport launched last year[4] and its governance arrangements mean the council is its accountable body. As such, North East Lincolnshire Council is responsible for the administration and payment of public cash to support the freeport.
Freeports developed in the wake of Brexit, though were theoretically possible before. Humber Freeport is one of eight in England so far, and includes locations in Hull, Goole, and Immingham[5] areas. Freeports are granted special tax rates relief for businesses based in them, have simpler customs arrangements and are given an initial tranche of government investment to get going. That investment is known as seed capital.
The council’s cabinet agreed £15m seed capital for three projects to support the Humber Freeport’s development. These are:
- Delivery of flexible industrial space at Pioneer Business Park, Stallingborough, to support growth and local opportunities in the supply chain
- The expansion of CATCH in Stallingborough to meet growing demand, and create an industrial decarbonisation centre
- Smaller investment in Humber Gate infrastructure, the former Courtaulds plant on the outskirts of Grimsby, namely the replacement of an over 50-years-old pipeline that deals with surface water run-off
Pioneer Business Park is match funded by land purchases and infrastructure already expended as part of the South Humber Industrial Investment Programme (SHIIP). The CATCH project is understood to have been allocated £5m seed capital. The planned decarbonisation centre will provide space for research and development, and bring together industries to work on emerging clean energy technology, such as hydrogen production and carbon capture and storage (CCS).
The government investment will act as a pre-cursor to up to £60m industrial sponsorship announced last year[6]. CATCH aims to train 1,000 apprentices a year by 2029.
Finally, the Humber Gate project will not only be match funded by the private sector, but also all risk taken on by it. The pipeline’s replacement is necessary to unlock brownfield land for future development.
“I don’t think anybody in the room has a crystal ball, but this has exciting potential for our area,” said Cllr Stephen Harness, portfolio holder for finance, resources and assets, at the cabinet meeting to agree the £15m investment. Back in 2021, seven Humber Freeport-associated projects were identified for possible government support.
CATCH’s envisioned national net zero training centre – initial £5m government investment is to precede up to £60m industrial sponsorship (Image: Catch)
The five top-scoring were submitted to government as part of the freeport’s full business case in January 2022. Two secured funding elsewhere and have since been withdrawn, leaving these three to be invested in.
“Seed capital projects will improve neighbouring infrastructure, including small scale commercial space to encourage industrial clustering which in turn will encourage more investment,” states the council document that cabinet decided on. It identifies rising material costs in recent years as a concern, though it has stabilised.
“The budget allows for contingencies,” it states, adding designers in consultation with the council will need to “align aspirations with the available budget, while minimising the potential impact on project outcomes”. It also indicates the seed capital must be spent by March 2026.
Tax relief at Humber Freeport with the likes of stamp duty land tax and national insurance rate reliefs was originally only available until 2026. This was lately extended to September 2031. Recently published Humber Freeport board minutes showed it lobbied government for an extension.
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Overall, the government is putting £25m seed capital investment into Humber Freeport. At a decarbonisation conference in November, the freeport’s CEO Simon Green stated it had already attracted £1bn investment, which will create up to 600 jobs in Hull and Goole.
References
- ^ North East Lincolnshire Council (www.grimsbytelegraph.co.uk)
- ^ Stallingborough (www.grimsbytelegraph.co.uk)
- ^ Grimsby (www.grimsbytelegraph.co.uk)
- ^ launched last year (www.business-live.co.uk)
- ^ Immingham (www.grimsbytelegraph.co.uk)
- ^ up to £60m industrial sponsorship announced last year (www.business-live.co.uk)
- ^ click the link (tinyurl.com)
- ^ Privacy Notice (bit.ly)