Teesside Freeport now fully operational after receiving final sign off from government

It is thought that the Freeport will provide a £3.2 billion boost for the region over the next five years. Credit: ITV News Tyne Tees

Teesside Freeport is now fully operational after receiving its final government sign off.

The Freeport will now receive £25 million in seed funding, and potentially hundreds of millions of pounds in locally retained business rates.

The idea behind the Freeport is that businesses based there can benefit from tax incentives to continue to drive growth in renewables, advanced manufacturing and the chemical and process sectors.

It is thought that the Freeport will create 18,00 new highly skilled jobs and will provide a £3.2 billion boost for the region over the next five years.

Work has already started on the site's first major development - SeAH's £400 million wind turbine factory - which is expected to create 750 direct jobs and 1,500 indirect jobs through supply chains.

What is a Freeport?

Freeports are secure customs zones located at ports where business can be carried out inside a country’s land border, but where different customs rules apply.

They can reduce administrative burdens and tariff controls, provide relief from duties and import taxes, and ease tax and planning regulations.

While located geographically within a country, they essentially exist outside its borders for tax purposes.

Where is the Teesside Freeport?

The Teesside Freeport covers sites across the region, including Teesworks, Wilton International, Teesside International Airport, the Port of Middlesbrough, the Port of Hartlepool, Liberty Steel and LV Shipping.

Freeports are secure customs zones located at ports where business can be carried out inside a country’s land border. Credit: Tees Valley Combined Authority

Tees Valley Mayor Ben Houchen said: "The Teesside Freeport, the UK's first operational freeport, has already welcomed its first consignment and this funding boost that comes with the final rubber stamp will go a long way in driving forward our game-changing ambitions, with its impact felt right across Teesside, Darlington and Hartlepool.

"This will help deliver thousands of good-quality, well-paid jobs and mark our region out as the only place to do business in the cleaner, safer and healthier industries of tomorrow."

Levelling Up Minister, and MP for Bishop Auckland, Dehenna Davison said: "Today is a historic day for Teesside and for the whole of UK, as the Teesside Freeport is officially fully up and running.

"Teesside Freeport is already delivering for the local area and beyond - the trade hub will supply parts for the world's biggest offshore windfarm which will create jobs and power homes."