Is there an Investment Zone near you?

Since their launch, Freeports and Investment Zones have captured the imagination of both local authorities and ambitious firms, particularly in relation to how they can take advantage of the favourable economic environment designed to help businesses grow.

Although both Freeports and Investment Zones in many regions of the UK are still at the concept stage, there’s a strong expectation that they will lead to significant job creation in the future, help attract overseas investment and ultimately drive ‘levelling up’ throughout the UK’s economy.

By way of explanation, Freeports are focused on or around ports (including airports), whereas Investment Zones are intended to focus on clusters of high-tech businesses. The government says it’s committed to establishing 13 Investment Zones across the UK, with each one benefitting from funding of £160m over 10 years. Each will concentrate on different sectors. Funding in Greater Manchester, for example, is aimed at boosting the advanced manufacturing sector, while Liverpool funding is targeting life sciences. Digital and life sciences are the focus in West Yorkshire, while in the north-east green industries and advanced manufacturing are the target.

Freeports are designed to boost economic activity and drive the levelling up agenda by fostering trade, investment and job creation. Freeports allow goods to be imported without the usual tariffs, and companies operating within these areas can enjoy reduced property taxes and national insurance rates.

You may be asking, what’s in it for the consumer sector? As you would expect, I’m a huge advocate of the tourism sector and believe it can act as a catalyst for economic development in areas that have not traditionally been investment hotspots. By drawing visitors, these regions benefit from increased spending in various sectors, including leisure, retail and hospitality, which in turn stimulates local businesses and infrastructure improvements. This economic boost can lead to the creation of jobs and enhance the overall quality of life for residents, fostering a positive cycle of growth and development.

I’m also confident that the domino effect of increased economic activity in each region will also lead to high demand for meetings, conferences and events, necessitating the development of local hospitality services such as venues, catering and accommodation. This, in turn, has the power to attract investment from hoteliers and restaurateurs looking to capitalise on a burgeoning market.

Investing in the regeneration of areas by enhancing infrastructure, amenities and transport can significantly boost the attractiveness of these locations as leisure destinations. Waterside locations, with their inherent charm, have the potential to draw more visitors. Freeports, leveraging these same connections, could see a similar uptick in leisure and tourism, contributing to a vibrant local economy and community revitalisation.

As Freeports and Investment Zones gain momentum, consumer-facing businesses stand to benefit significantly. These designated areas, with their reduced tariffs and tax advantages, create fertile ground for growth. By attracting visitors and stimulating local economies, they pave the way for job creation and improved quality of life. As infrastructure develops, these regions become vibrant hubs, inviting investment and revitalising communities. The potential impact is immense, and businesses should closely monitor these evolving opportunities.

Where are the Freeports and Investment Zones?

Investment Zones

• Greater Manchester
• Liverpool City Region
• South Yorkshire
• Tees Valley
• West Midlands
• West Yorkshire
• East Midlands (proposed Mayoral Combined Authorities)
• North East (proposed Mayoral Combined Authorities)
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Freeports

• East Midlands Freeport
• Freeport East
• Humber Freeport
• Liverpool City Region Freeport
• Plymouth and South Devon Freeport
• Solent Freeport
• Teesside Freeport
• Thames Freeport
• Forth Green Freeport
• Inverness and Cromarty Firth
• Green Freeport
• Anglesey Freeport
• Celtic Freeport

Charlotte Rees-John is partner and head of retail, hospitality and leisure at law firm Irwin Mitchell