Plymouth and South Devon to be one of eight new UK freeports
Freeports are special tax zones that help companies defer and avoid tax
Last updated 3rd Mar 2021
The Chancellor has announced eight new freeports will be created in the UK - including in Plymouth and South Devon.
Rishi Sunak argues it will help boost manufacturing in areas that have lost their old economies, but some critics argue it does little to boost jobs.
In his budget statement, Mr. Sunak said freeports are "special economic zones with different rules to make it easier and cheaper to do business''.
He's promised they would come with simpler planning, cheaper customs- with favourable tariffs, VAT or duties- and lower taxes, with "tax breaks to encourage construction, private investment and job creation''.
The freeport means companies can import goods tariff-free and only pay once it is sold into the UK
They can also export the final goods without paying UK tariffs.
But the UK Trade Policy Observatory says freeports do not "guarantee" regeneration and says their success often depends on design.
They also warn that the special zones do little to create "new" economic activity, instead driving in business from other regions.
A date for when the freeports will be in operation has not been set.
The news has been welcomed by local politicians, who've called it a "triumph"