Freeport zones offer hope for economic growth
Forth Green Freeport chairperson Dame Susan Rice
The challenges of creating economic growth in a high tax environment are considerable, so much hope is pinned on the new low tax Forth Green Freeport zones. The final business case is up before Edinburgh Council’s Policy & Sustainability committee today, which will no doubt be poo-pooed by the anti-growth Greens and their fellow travellers in Leith’s hard-left SNP. Companies in the zones will benefit from full non-domestic rate relief for five years, land and building transaction tax relief and no employer National Insurance contributions for three years on new employees earning up to GBP25,000, and success will bolster the case for lower business taxes in general.
Along with considerable customs incentives and simplifications, the expectations for Edinburgh are high, with today’s report listing benefits which even if only half delivered would still be worth having. Securing GBP24.5m from the UK and Scottish Governments will fund land preparation works to create a 30-hectare offshore wind turbine facility at the Port of Leith, alongside a new creative industry hub to enhance the FirstStage Studios complex. Edinburgh Airport[1] will be a designated Customs Site to complement its plans for a Global Air Park for international trade, with a focus on e-commerce and pharmaceuticals.
Expected to support 34,500 jobs and boost skills, innovation, and key sector growth like commercial services as well as renewables, if it delivers in full the challenge will be to provide suitable social and domestic infrastructure an expanding, affluent population expects.
Perhaps the low tax and low red-tape incentives model should be extended to housebuilders too?
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References
- ^ Edinburgh Airport (www.edinburghnews.scotsman.com)