Minutes:
The Assistant Director of
Economic Growth and Partnerships introduced the report and stated
that it formed part of a wider government policy for increased
investments in trade; innovation and regeneration; and levelling up
to improve people’s employment prospects and contribute to
initiatives aimed at improving health and wellbeing. He stated that
the Outline Business Case for the scheme had been submitted to
government and was approved in October 2021, with the sites
designated alongside other financial aspects in December 2021. He
stated that the Full Business Case (FBC) had been submitted in
January 2022, and was currently being quality assured by numerous
government departments at Whitehall. He added that the partners
were hoping to receive formal approval of the FBC by the end of
March or early April. He thanked partners at the London Boroughs of
Barking and Dagenham and Havering for their joint work on the
project.
The Assistant Director of Economic Growth and Partnerships stated
that the Freeport could provide approximately 21,000 new jobs and
would see additional private investment of over £4bn, the
majority of which would come into Thurrock. He commented that the
Freeport would provide opportunities for businesses both during
construction and operation, and Thurrock were hoping to link small
and medium enterprises (SMEs) to the Freeport through the supply
chain. He added that the Freeport would also present opportunities
to upskill the local workforce as Officers were currently looking
at how they could target opportunities available and upskill people
to be able to apply for these jobs. He stated that targeted
pathfinder programme would be available that would help people to
access jobs and remove their barriers to employment.
The Assistant Director of Finance added that the business rates
scheme for the Freeport had been active since December 2021, but
the proposed policy provided clarity for businesses regarding
business rate relief. He stated that the process for business rate
relief sat within the Council, but business rates would be
compensated for by central government. He stated that Thurrock were
the lead local authority and accountable body for the Freeport, and
that any further funding would go through Thurrock as the
accountable body for the other three local authorities.
Councillor Kent queried the different between the new proposed
Freeport and the freeports that had existed until 2012 and had been
removed in 2014. He also asked if the Thames Freeport would work on
the same basis as the other 5000 Freeports worldwide. He questioned
what the basis for the business rate retention was and if this was
up for negotiation. The Assistant Director of Economic Growth and
Partnerships replied that the difference between the Freeports in
2012 and 2022 related to the different policies, additional levers
and processes in place. He stated that the new Freeports connected
multiple different departments across central government and
involved new regeneration policies. He explained that customs
arrangements for Freeports remained the same as in 2012 but there
were ongoing discussions with HMRC regarding this issue. The
Assistant Director of Finance stated that the customs site provided
ongoing benefits for the Council and businesses, and 100% of
business rates would be retained for 25 years, and would help
generate larger capital programmes.
Councillor Kent asked how the Council would work to ensure
businesses did not move from other areas in Thurrock into the
Freeport area to receive business rate relief. The Assistant
Director of Finance replied that the Council were working hard to
ensure that issues regarding displacement did not arise across the
three involved local authorities. He stated that every application
to the Freeport would be considered and government guidance was
scheduled to be published on this issue. Councillor Kent asked if
an update report could be brought back before the Committee. The
Chair and Committee agreed to this and a report was added to the
Work Programme for next municipal year. Councillor Collins queried
how the Freeport would be funded. The Assistant Director replied
that £25mn would be from seed funding; £22mn from
Thurrock Council; and £3mn from Ford. He explained that this
would accelerate the preparation to get businesses on site, for
example through land remediation programmes. The Assistant Director
of Economic Growth and Partnerships added that this funding would
speed up the investment and other processes by approximately
six-eight months and would support infrastructure such as junction
improvements. Councillor Collins asked if any business could apply
to become part of the Freeport. The Assistant Director of Finance
replied that certain businesses would be rejected if they did not
meet the objectives of the proposal, for example residential and
retail areas in the Freeport. The Assistant Director of Economic
Growth and Partnerships added that the Freeport would focus on four
sectors: advanced logistics; light manufacturing; automotive
manufacturing; and energy/circular economy. He stated that these
sectors built on Thurrock’s current economic strengths and
business base.
RESOLVED: That the Committee:
1. Commented on the report and the recommendations to be considered
by Cabinet on 9 March 2022:
That Cabinet:
a. Approves the Thames Freeport Business Rates Policy at Appendix
1.
b. Delegates authority to the Section 151 Officer to make necessary
amendments to the policy as required, in consultation with the
Cabinet Member for Finance, and the Cabinet Member for
Regeneration, Strategic Planning and External Relationships.
c. Approve the Chief Executive’s appointment as the
Council’s representative on the Thames Freeport Governance
Board, who will be responsible for briefing and updating the Leader
of the Council, the Cabinet Member for Finance, and the Cabinet
Member for Regeneration, Strategic Planning and External
Relationships on key and significant activity.
d. Endorses the relevant Officers to participate in and represent
the Council on the various Thames Freeport Sub-committees as
necessary and delegates authority to the Chief Executive to appoint
Officers to appropriate sub-committees e.g. Skills, Levelling Up
and Regeneration.
e. Delegates authority to the Chief Executive, in consultation with
the Corporate Director of Resources and Place Delivery and the
Monitoring Officer, to enter into any Memoranda of Understanding
with government and Freeport bodies in order to deliver the
activities of Thames Freeport in consultation with the Leader of
the Council, Cabinet Member for Finance and the Cabinet Member for
Regeneration, Strategic Planning and External
Relationships.
Supporting documents: