Teesside Freeport

Teesside Freeport is the largest freeport in the United Kingdom, where special arrangements apply for taxation and customs.[1] It was launched in 2021.[2]

A ministerial visit to the Teesworks site in 2021

The freeport covers 4,500 acres across multiple sites including:

South Tees Development Corporation, which predates the freeport, has made substantial investments at the Teesworks site.[4][3] With the announcement of the freeport, and the anticipated demand for land within it, the programme of demolition and remediation work was accelerated. In 2022 work began on a £400m factory to make offshore wind turbines on part of the Teesworks site acquired by Teesworks Ltd for £100. Other projects have been announced.[3]

Criticisms of the project

Politicians and the media have criticised Teesworks for possible pollution of the Tees in the context of an unexplained shellfish die-off near Teesside and for a perceived lack of transparency in the transfer of assets.[5]

Pollution concerns

In October 2021 work started on the 1.2 km South Bank Quay project to provide a deep water facility. In the same month thousands of dead crabs and lobsters were washed up on the Tees estuary and beaches along the North-East coast of England. The deaths were first reported in Seaton Carew, Redcar and Seaham.[6] Some people blamed dredging of the Tees, but this was not supported by government enquiries.

Corruption allegations

The corporate structure behind the freeport includes multiple subsidiary companies of which several have local business owners Chris Musgrave and Martin Corney as directors. MPs have alleged that significant assets have been transferred to these directors without a formal tendering process as is usual for public-sector development projects in the UK.[7] Middlesbrough MP Andy McDonald, citing a Private Eye article in Parliament, said that the only economic growth being delivered at Teesworks "is into the accounts of Ben Houchen's pals, Messrs Musgrave and Corney". He alleged that for a £100 investment, the developers would "benefit to the tune of £100m".[8]

On 24 May 2023 two inquiries were announced: one with limited scope by the National Audit Office and a second "independent".[9] On the same day the freeport's director, Nolan Gray, announced that he was leaving; the Tees Valley Combined Authority (TVCA) said that the role which was created in 2021 was no longer necessary and that Gray would not be replaced.[10]

References
  1. "Low taxes and levelling up: the great freeport experiment comes to Teesside". the Guardian. 2021-11-13. Retrieved 2023-01-19.
  2. "Teesside Freeport". Tees Valley Combined Authority. Retrieved 2023-01-19.
  3. Teesworks will be almost full within 18 months - Houchen
  4. "Northern Powerhouse Minister greenlights" (Press release). Ministry of Housing, Communities & Local Government. 2019.
  5. Hansard - Alex Cunningham (2023). Prime Minister's Questions
  6. "Dead crabs and fish washed up on Teesside beaches". BBC News. 25 October 2021. Retrieved 22 October 2022.
  7. Private Eye: issues 1585 - 1590, 2022 - 2023.
  8. "Mayor brands MP 'liar and a coward' in project row". BBC News. 31 May 2023. Retrieved 17 June 2023.
  9. Brown, Mark; Quinn, Ben (24 May 2023). "Michael Gove orders review into corruption allegations at Teesside freeport". The Guardian. Archived from the original on 25 May 2023. Retrieved 25 May 2023.
  10. "Teesside Freeport chief quits as Teesworks inquiry announced". The Northern Echo. Retrieved 26 May 2023.
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