COUNCIL chiefs have backed plans for Halton to become part of one of eight new ‘freeports’, with tax breaks for business and more than £6m pledged towards local infrastructure.

Chancellor Rishi Sunak announced the creation of the freeports in his March 2021 Budget, with one in the Liverpool City Region (LCR) due to be established this summer. Backers claim it could create up to 14,000 jobs.

A freeport is designed to boost economic activity near airports and shipping ports, with goods imported from abroad at designated customs sites being exempt from tariffs, enabling manufacturers based there to import materials at lower costs to boost productivity.

Companies based at special tax sites can also claim lower property taxes and benefit from lower rates of national insurance when they hire staff.

At a recent meeting of Halton’s ruling Executive Board, borough chiefs backed plans for Halton to become part of the LCR freeport. If approved by the Goverment, it means the LCR freeport will have three tax sites - Parkside in St Helens, Wirral Waters and 3MG in Halton.

Halton will also have two customs sites - one at 3MG (Stobart Rail Terminal) and another at the Port of Weston.

Qualifying businesses could also receive up to five years’ business rate relief fully funded by the Government. Halton Council will also keep all business rates generated within the freeport boundary from 2022 for a period of 25 years, to invest in regeneration projects which may be linked to the freeport, but can be wider in scope or to use the income to borrow against.

As part of the scheme, Halton will also be given £6.5m towards infrastructure to open up the Port of Weston and divert traffic from local roads into a dedicated commercial access point.

A report to the Executive Board, said: “The main focus of these infrastructure works will be a connecting road from Burton Road to the Port of Weston opening up access to the Port of Weston and Percival Lane, providing access to in the region of 40 hectares of land with the potential for development, including Weston’s surface access.”

Freeports have proven controversial in the past. The were first introduced in the 1980s then phased out in 2012. Boris Johnson says bringing them back will help with 'levelling up', but critics say freeports do not actually boost the wider economy, and instead just move activity from one place to another.

Following the vote, a final business case will now be submitted to the government by the LCR this month.