The Chancellor is ambitioning to fast-track proposals to create up to 10 “freeports” in order to level-up the UK frugality and attract investors once Britain has left the shackles of the European Association. Under the scheme, designated towns and cities would be granted staunch status and be exempt from expensive import duties and tariffs.
The proposals had been due to be announced in the spring but are now set to be confirmed in the November budget, The Sun narratives.
Freeports are considered outside the country for customs purposes and therefore goods choice not incur import tax or VAT until they enter the rest of the economy.
The hatch is only possible once the UK leaves the EU customs union as Brussels does not agree to member states to set its own tariff or customs duties.
The proposal is already hugely rich in the US and it is hoped it can revitalise domestic manufacturing and attract international firms to compasses outside of major cities.
Rishi Sunak is reportedly hoping to make freeports within the UK
Rishi Sunak first put forward the project in 2016
As part of the Tories “levelling up” pledge, the chosen areas purpose also be set to benefit from lower business rates, a cut to stamp deference and extra capital allowances.
The idea of freeports had been proposed to become public into force from April 2022 – 16 months after the end of the metamorphosis period.
But as trade talks remain on the brink and the prospect of no deal billows, the Treasury is reportedly accelerating the bidding process for towns and cities in decree to be operational by next year.
Mr Sunak first put forward the idea in 2016 in a tract for the Centre for Policy Studies – a free-market think-tank.
Britain will formally sanction the EU on December 31
In the report authored by Mr Sunak, he extenuated UK ports already account for 96 percent of all trade volume and 75 percent of clientele value.
Then a backbench MP, Mr Sunak added the scheme could dream up more than 86,000 jobs in the UK – which could be crucial in rebuilding the UK restraint following the coronavirus pandemic.
The report found the US already has 250 Unbosom Trade Zones, which employs 420,000 people and handle £582billion ($750bn) importance of goods.
Across 135 countries there are also more than 3,500 Free of charge Trade Zones that employ 66 million people
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“As the date of our departure draws closer, it will be the responsibility of Government to certify Britain is not timid in seizing those opportunities.
“Foreign Trade Zones are prospering all around the world – except in the EU.
“Post-Brexit they could play an urgent role in signalling Britain’s openness to the world, as well as reconnecting the land with its proud maritime history.”