Referral of the proposed Welsh Freeports Subsidy Scheme by the Welsh Government (WG) and the Ministry of Housing, Communities and Local Government (MHCLG)
The Subsidy Advice Unit (SAU) has published a report providing advice to the Welsh Government (WG) and the Ministry of Housing, Communities and Local Government (MHCLG) concerning its proposed Welsh Freeports Subsidy Scheme.
Administrative timetable
| Date | Action |
|---|---|
| 1 November 2024 | SAU’s report published |
| 8 October 2024 | Deadline for receipt of any third-party submissions (submissions after 5pm on this date cannot be taken into account) |
| 23 September 2024 | Beginning of reporting period |
Final report
1 November 2024: The SAU has published a report providing advice to the WG and MHCLG concerning their proposed Welsh Freeports Subsidy Scheme. The report includes the SAU’s evaluation of the WG’s and MHCLG’s Assessment of Compliance of the proposed Scheme with the requirements set out in the Subsidy Control Act 2022.
- Final report (1.11.24)
Request from the WG and MHCLG
23 September 2024: The SAU has accepted a request for a report from the WG and MHCLG on the proposed Welsh Freeports Subsidy Scheme. This request relates to a Subsidy Scheme of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of the WG’s and MHCLG’s assessment of whether the scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the scheme provided by the WG and MHCLG
A Welsh Freeport is a large, zoned area within a defined boundary which includes a rail-, sea-, or air-port. Operators and businesses locating on specific sites within the zone can benefit from a package of tax and other incentives through a combination of devolved and reserved levers.
The WG and MHCLG are proposing to create a Subsidy Scheme to establish Freeports in places that are experiencing economic disadvantage but have significant unmet potential in Wales. They aim to harness local strengths and assets (including port infrastructure) to boost opportunity for local communities and drive national productivity growth.
The main objectives of the Freeports Programme for Wales are to: promote regeneration and high quality job creation, create hubs for global trade and investment, and foster an innovative environment.
Places were selected according to the detailed criteria set out in the Welsh Freeports Bidding Prospectus. The criteria areas were:
- ability to deliver the objective “promote regeneration and high-quality job creation”
- ability to deliver the objective “establishing hubs for global trade and investment”
- ability to deliver the objective “fostering an innovative environment”
- deliverability of proposal effectively at pace
- level of private sector involvement in the proposal
Following a competitive bidding exercise completed in 2023, two Welsh Freeports were selected; Anglesey Freeport (Anglesey) and Celtic Freeport (Pembrokeshire and Neath Port Talbot).
Under the Welsh Freeport Scheme qualifying enterprises will be able to receive support through the following measures:
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five tax reliefs (National Insurance Contributions, Enhanced Buildings Allowance, Non-Domestic Rates and Land Transaction Tax) available on new investment on specific, underdeveloped sites - these are expected to be available from 2024 to 2034
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up to £25 million seed capital funding per Freeport, administered by Local Authorities and used for supporting projects which address local market failures and unlock sites for development, for example through transport infrastructure or site remediation works - seed capital may or may not constitute a subsidy depending on how it is used by the Local Authority
WG and MHCLG have determined that the Welsh Freeports Subsidy Scheme is a Subsidy Scheme of Particular Interest as there is the potential for the Scheme to provide subsidies of greater than £10m to qualifying enterprises.
WG and MHCLG have stated that whilst it is not possible to establish a definitive ‘budget’ for the Welsh Freeports Scheme ahead of time, they estimate that it will be approximated as £185 million (£50 million in seed capital, £135 million in tax reliefs).
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the WG’s proposed Welsh Freeports Subsidy Scheme, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to the public authority: [email protected]
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with the WG and MHCLG. The SAU will send a copy of your submission to the WG and MHCLG together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the scheme or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with the WG using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
- CMA press team: 020 3738 6460 or [email protected]
Updates to this page
Published 25 September 2024Last updated 1 November 2024 + show all updates
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Final report published
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First published.