Free ports can help rebalance the economy

4. FREE PORTS CAN HELP REBALANCE THE ECONOMY.

There is a clear political desire to rebalance the British economy away from London towards the regions, and away from the services sector towards manufacturing. A British Free Ports programme would directly expedite both these policy objectives. Free Ports would boost economic activity in exactly the areas and sectors where more growth and high-productivity jobs are needed.

Growing the Regions.

In 2015 the average contribution of a London worker to the UK economy was £42,666. Outside of the South East, no other region averaged above £25,000. In Northern Ireland, one of the poorest performing regions, the figure was just £17,573. This stark divide between the economy of London and that of the North remains one of the most pressing policy challenges facing the UK.
Foreign Trade Zones built around Britain’s ports are particularly well suited to addressing this gap. Unlike continental markets where emphasis is placed upon monolithic super-ports, the UK’s maritime activity extends over a much larger number of smaller ports across a relatively diverse geographic area. One glance at the map below illustrates well the geographic breadth of the UK port sector. By creating port-based free Zones and thereby boosting economic activity in these areas, jobs and investment would arrive where they are needed.
Not only are ports widely distributed across the country, but the North of England punches well above its weight in the sector. While the region is home to around 24 per cent of the total population, and contributes about 20 per cent of total GVA it accommodates 35 per cent of total port throughput. A Free Ports programme would disproportionately benefit the North and help make a reality of aspirations to create a ‘Northern Powerhouse’.