Free Zones: Non-domestic Rates

(asked on 1st February 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect on local government finances for particular authorities in the event that existing businesses paying national non-domestic rates use Freeport status in neighbouring authorities to relocate their premises, rendering their previous premises eligible for empty relief; what estimate he has made of (a) the number of businesses that may move to existing premises in respect of either particular Freeports or the wider Freeports policy and (b) the total amount of empty relief in respect of national non-domestic rates as a result of the Freeports policy; and if he will publish the model assumptions, parameters, calculations and methods which underpin those assessments.


Answered by
Steve Barclay Portrait
Steve Barclay
Secretary of State for Environment, Food and Rural Affairs
This question was answered on 4th February 2021

Tax measures have been carefully designed to avoid displacement and the government will ensure it has the power to prevent access where businesses or operators are found to be abusing reliefs

Bidders will be required to explain how their choice of tax site locations minimise displacement of economic activity from wider local areas, especially other economically disadvantaged areas.

Freeports will encourage investment from around the world and within the UK to create new businesses and new economic activity in Freeports. This will create jobs in deprived communities across the country, rather than harmful displacement.

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