This is how Doncaster could become a low-tax 'freeport' after Brexit

The Sheffield City Region Combined Authority is working with Doncaster Sheffield Airport on a bid for freeport status that may also include the town’s two rail freight terminals, iPort and Doncaster Rail Hub.

The airport and combined authority have appointed construction firm Mace to come up with a response to the Government’s freeport consultation.

Freeports, designated as areas with little to no tax in order to encourage economic activity, are a key part of the Government's post-Brexit plans and are backed by Chancellor Rishi Sunak.

In February the Government started a consultation on its freeports policy and set out how it plans to identify and award up to ten freeports across the UK by 2021.

Conservative Tees Valley mayor Ben Houchen has set out how Teesport, a major port four miles east of Middlesbrough in the old North Riding of Yorkshire, could boost the UK's economy by becoming a freeport.

But the Sheffield City Region and Doncaster Sheffield Airport have also now revealed plans to team up to bid for freeport status. This would create a zone that while located geographically in the UK, would essentially exist outside its borders for tax purposes.

A report discussed by the Local Enterprise Partnership said freeports were allowed before Brexit, but EU rules which the UK will no longer be bound by at the end of transition period "provide restrictions on what form freeports can take".

It said: "Being a customs-free zone means that goods entering a Freeport would attract no tariffs and may also face lower non-tariff barriers such as simpler customs procedures.

"‘Intermediate’ goods could be manufactured within the Freeport and be either re-exported (where again no tariff would apply) or be imported into the UK as a ‘finished’ good and face a lower tariff rate.

"Reports which have modelled potential trade impacts find that potential benefits of freeports include increasing manufacturing output, creating regionally focussed employment, and promoting trade."

Mace has been contracted by the airport to develop a response to the Government consultation, and the combined authority has agreed to pay 50 per cent of the cost, meaning up to £30,000.

James Muir, Sheffield City Region LEP Chairman, said: “By bringing together Doncaster Sheffield Airport, one of the UK’s fastest growing airports and iPort, one of the UK’s leading rail ports, the proposed freeport will provide the Sheffield City Region with a huge opportunity.

“A freeport in our region would create a hotbed for innovation and support the growth of our well-established manufacturing sector, which already includes the likes of McLaren, Boeing and Rolls Royce.

“The Sheffield City Region is already at the forefront of innovation in manufacturing through the Advanced Manufacturing Research Centre, which exports ideas and products across the world.

“Through the creation of a regional hub for international trade and investment, we hope to attract more innovative businesses to our whole region and create high-skilled jobs for our workers.”