The chancellor will not unveil new freeports in Wednesday’s budget, despite the government announcing on Friday that she would unveil them in Wednesday’s budget.
In a series of pre-budget briefings, Downing Street appeared to have gone too far, promising that new low-tax locations would boost economic growth and jobs.
instead of announcing As has been widely reported, five new freeports, The Chancellor will confirm the next stage of funding for some existing freeport sites.
A government official confirmed to the BBC on Sunday that there was a “problem with the communications system”.
The error is caused by confusion between the Freeport site itself and the multiple customs areas contained within it.
Chancellor Rachel Reeves will confirm five new customs areas within existing free ports rather than new free ports, the official said.
A free port is an area close to a shipping port or airport where imported goods are duty-free. Businesses in these areas also pay lower National Insurance for new employees and lower property taxes.
They are designed to promote economic activities such as trade, investment and job creation.
Reeves is still set to reveal plans for a separate investment zone in the East Midlands, which were also announced on Friday.
The Financial Times, which first reported the error, said Friday’s announcement, made as the Prime Minister attended the Commonwealth Heads of Government Summit in Samoa, caused “confusion” among companies and officials involved in the freeport because they had not Heard about this. Any plans.
While the erroneous briefing is unlikely to have any concrete impact on investment plans, it creates a sense that things are not running smoothly in Downing Street.
Sue Gray resigned as chief of staff to Prime Minister Sir Keir Starmer earlier this month amid reports of friction among No 10 staff.
Current freeports are located in Inverness, Forth, Teesside, Humber, Liverpool, Anglesey, Milford Haven, Plymouth, Solent, Thames, Felixstowe and Harwich around the port.
A Treasury spokesman said the government was keen to reassure businesses planning to invest in low-tax zones that there had been no changes to plans, stressing that the government remained committed “to ensuring that tariff concessions continue to be available”.
Sir Keir backed the concept of free ports on Friday, saying it was “working well” despite being a policy inherited from the previous Conservative government.
He added that the freeport “could work better” if local businesses and politicians were more involved.
However, critics argue that they simply move economic activity or jobs from one part of the country to another rather than creating new opportunities or roles.
