Teesside Freeport

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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]

Contents

A ministerial visit by Kwasi Kwarteng to the Teesworks site in 2021 Teesworks Business Secretary Visit.jpg
A ministerial visit by Kwasi Kwarteng 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.

Developments

In 2022 work began on a £400m factory for SeAH Wind to make offshore wind turbine bases on part of the Teesworks site acquired by Teesworks Ltd for £100. Other projects have been announced. [3]

A Net Zero Teesside Power project broke ground in 2023. NZT Power is a gas-fired power station with carbon capture and storage capability, aiming to become a de-carbonised industrial cluster. [5]

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. [6]

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. [7] Some people blamed dredging of the Tees, but this was not supported by government enquiries.

Corruption allegations, transparency concerns and inquiry

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. [8] 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". [9]

Teesworks; independent inquiry

The government announced an independent inquiry in May 2023. [10] 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. [11] The inquiry reported in January 2024. It found no evidence of corruption, but criticised lack of transparency. [12] [13] [14]

Some people would have liked more involvement on the part of the National Audit Office. [10]

See also

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References

  1. ↑ "Low taxes and levelling up: the great freeport experiment comes to Teesside". The Guardian. 13 November 2021. Retrieved 19 January 2023.
  2. ↑ "Teesside Freeport". Tees Valley Combined Authority. Retrieved 19 January 2023.
  3. 1 2 3 "Teesworks will be almost full within 18 months - Houchen". BBC News. 19 July 2023.
  4. ↑ "Northern Powerhouse Minister greenlights" (Press release). Ministry of Housing, Communities & Local Government. 2019.
  5. ↑ "Work Begins At Teesworks To Pave Way For World-Leading NZT Power Project". 28 September 2023.
  6. ↑ Hansard - Alex Cunningham (2023). Prime Minister's Questions
  7. ↑ "Dead crabs and fish washed up on Teesside beaches". BBC News. 25 October 2021. Retrieved 22 October 2022.
  8. ↑ Private Eye : issues 1585 - 1590, 2022 - 2023.
  9. ↑ "Mayor brands MP 'liar and a coward' in project row". BBC News. 31 May 2023. Retrieved 17 June 2023.
  10. 1 2 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.
  11. ↑ "Teesside Freeport chief quits as Teesworks inquiry announced". The Northern Echo . 24 May 2023. Retrieved 26 May 2023.
  12. ↑ "Teesworks inquiry: 'No evidence of corruption'". January 2024.
  13. ↑ Williams, Jennifer (23 August 2024). "Developers of controversial UK regeneration project 'reluctantly' agree to renegotiate terms". Financial Times.
  14. ↑ Williams, Jennifer (2 February 2024). "Teesworks inquiry raises questions on governance in England's devolved regions". Financial Times.
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