Tax relief extended at green freeports

Tax relief for green freeports is to be extended for a further five years after UK and Scottish ministers reached an agreement.

The extension until 2034 will apply to Inverness and Cromarty Firth Green Freeport, the Forth Green Freeport and prospective investment zones in Glasgow City Region and the North East of Scotland.

Scottish ministers have backed the plans, which were announced by Chancellor Jeremy Hunt in his spring Budget after they were first set out in the UK Government’s autumn statement.

Green freeport status offers special tax incentives and lower tariffs around ports, with the aim of stimulating economic growth.

Inverness and Cromarty Firth Green Freeport and Forth Green Freeport were announced as Scotland’s two winning bids in January last year through the scheme agreed by the Scottish and UK Governments.

Deputy First Minister Shona Robison said: “I am pleased that Scottish and UK Ministers have reached agreement on extending the tax reliefs window for green freeports from 2029 to 2034.

“We strongly support firm joint action to ensure that the green freeports and prospective investment zones – and the landowners and businesses operating within them – all live up to a clear set of policy commitments, particularly in relation to our just transition to net zero and fair work principles.

“We continue to work constructively with the UK Government and the Inverness and Cromarty Firth Green Freeport consortium to get the project up and running as quickly as possible and ensure it has maximum positive impact for businesses, communities and Scotland’s wider economy.”

A UK Government spokesperson said: “The Chancellor confirmed at spring Budget that freeport tax relief will be extended by five years to help maximise new investment by giving businesses long-term support on their large-scale projects at freeport sites.

“It’s a major vote of confidence in the programme and shows what can be achieved when Scotland’s two governments work together.

“Up to £52 million is being invested by the UK Government to create the new Freeports at Inverness and Cromarty Firth and Firth of Forth, bringing regeneration, attracting up to an estimated £10 billion in investment and creating around 75,000 new, high-skilled jobs.

“Advancing freeports is just one way in which the UK Government is encouraging growth in Scotland.

“There’s also up to £320 million jointly for two Investment Zones in the Glasgow City Region and in the North East of Scotland, and opportunities for all of these to secure new, additional funding through the Investment Opportunity Fund.”