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North and north-east still in the dark over freeport bids as investment zones could be scrapped

North and north-east businesses are in the dark over freeports. Image: Port of Aberdeen.
North and north-east businesses are in the dark over freeports. Image: Port of Aberdeen.

Businesses in the north and north-east remain none the wiser over green freeport bids as the Tories hinted low-tax “investment zones” could be abandoned.

Aberdeen and Peterhead, Inverness and Cromarty Firth, and Orkney all have separate applications for new special economic zones in the hope of creating thousands of jobs.

Scottish Secretary Alister Jack admitted the two successful Scottish applications had already been chosen at this month’s Tory conference.

Nearly a month later, the UK Government’s Levelling Up department gave The Press and Journal no clarity as to when the winners will be announced.

It’s understood plans from former Prime Minister Liz Truss to give low investment status to the losing bids had caused a hold-up.

Michael Gove revealed low investment zones could be scrapped.Her policy would have meant any successful north and north-east applications could still win special low-tax status.

However, Tory minister Mr Gove said he was reviewing the proposed scheme and claimed there were concerns about the environmental impact they would have.

He told Sky News: “I will be looking at the proposals that were drawn up when Liz was prime minister,and anything that might in any way undermine environmental protections is out.”

Since replacing Kwasi Kwarteng, Tory Chancellor Jeremy Hunt has reversed many of the controversial measures backed by Ms Truss.

Even more of her proposed policies are expected to be undone now she has been replaced by Rishi Sunak in 10 Downing Street.

While SNP ministers backed green freeports being created in Scotland after lengthy negotiations, they were less keen on low investment zones which would slash taxes further.

Hopes for ‘rapid conclusion’

The Scottish Government said they hope the winning freeport bids will be announced as soon as possible.

A spokesperson said: “The Scottish Government wants to see the rapid conclusion of the green ports competitive process.

“Following the various recent changes in the UK Government, we hope soon to be in a position jointly to announce the winning bids.”

The Scottish Greens – who have a power-sharing agreement with the SNP at Holyrood – are opposed to freeports.

Aberdeen-based MSP Maggie Chapman branded them “tax dodging schemes” and claimed they were a “greenwashed Brexit project”.

Other areas competing for freeport status include Glasgow and the Firth of Forth.