Select Committee · Business and Trade Committee

The performance of investment zones and freeports in England

Status: Closed Opened: 9 Jun 2023 Closed: 24 May 2024 4 recommendations 8 conclusions 1 report

The Business and Trade Committee is launching an inquiry into the performance of investment zones and freeports in England. The Committee will examine what progress has been made so far on both investment zones and freeports. It will also consider how England can make the most of these policies now and in the future.

Reports

1 report
Title HC No. Published Items Response
Fourth Report - Performance of investment zones and freepor… HC 272 26 Apr 2024 12 Overdue

Recommendations & Conclusions

12 items
1 Conclusion Fourth Report - Performance of investme…

Publication of detailed sub-national public investment statistics would enable regional inequality analysis.

The publication of detailed sub-national statistics on regional public investment would facilitate meaningful analysis, scrutiny and discussion of regional inequality by Parliament, civil society and the public. The publication of such statistics would allow Parliament to compare the investment in freeports and investment zones with other investments in the economy. …

Department for Business and Trade
2 Conclusion Fourth Report - Performance of investme…

Extend detailed monitoring and evaluation methodologies to all investment zones.

The economic impacts and benefit-to-cost ratio of freeports and investment zones will be difficult to estimate. However, the approach taken by Government will still provide some information on the programme impact on various outcomes. It will allow sharing of best practice between freeports, and provide lessons learned for future policy …

Department for Business and Trade
3 Recommendation Fourth Report - Performance of investme…

Publish eventual evaluation reports, detailed data, and monitoring dashboards for freeports and investment zones.

The Government must publish the eventual evaluation reports of freeports and investment zones and, where possible, the data used, including detailed local data. In the meantime, the dashboards being created to monitor freeports should be published, with commercially sensitive information redacted, if required.

Department for Business and Trade
4 Recommendation Fourth Report - Performance of investme…

Publish quantitative impact assessments for freeports and investment zones on employment, investment, and trade.

To improve transparency and to facilitate accurate cost-benefit analyses of freeports and investment zones, the Government must publish quantitative assessments of the impact of freeports and investment zones on employment, investment and trade alongside the Freeports Annual Report (see paragraph 54). Those assessments should include a clear explanation of their …

Department for Business and Trade
5 Conclusion Fourth Report - Performance of investme…

Freeport and investment zone success depends on long-term commitment and effective coordination.

Freeports and investment zones are examples of active, place-based industrial policy by Government, which account for approximately 0.2% of spending on economic affairs. They may attract additional investment and jobs to the areas in which they are located. The critical factors determining success will be long-term political commitment, delivery co-ordination …

Department for Business and Trade
6 Conclusion Fourth Report - Performance of investme…

Freeports and investment zones require sustained long-term political commitment to prevent policy uncertainty.

Given the relatively small scale of public investment and the long-term time horizon of potential gains, freeports and investment zones need long-term political commitment by central Government. Cancelling those policies would create policy uncertainty and instability with knock-on impacts on investment confidence. (Paragraph 35) 30 Performance of investment zones and …

Department for Business and Trade
7 Conclusion Fourth Report - Performance of investme…

Address critical challenges to unlock the full potential of freeports and investment zones.

Six challenges must be addressed to allow freeports and investment zones to achieve their full potential: (a) prioritised access to energy; (b) extended planning freedoms; (c) access to enhanced skills; (d) improved customs arrangements; (e) connection to wider government economic security policies, including the potential of relocation incentives for smaller …

Department for Business and Trade
9 Conclusion Fourth Report - Performance of investme…

Link freeports and investment zones to regional leaders and include them on investment groups.

All freeports and investment zones should be linked to a single regional leader, such as a Metro Mayor, who should be held accountable for regeneration projects and link national and local government. Ministers should consider how best to include Metro Mayors on the new Ministerial Investment Group created as a …

Department for Business and Trade
10 Recommendation Fourth Report - Performance of investme…

Enhance scrutiny and audit of mayoral combined authorities, linking funding to engagement.

The Government must enhance scrutiny and audit of mayoral combined authorities. Improvements could include making additional funding provided to combined authorities conditional on high attendance and engagement with scrutiny meetings or piloting local audit account committees.

Department for Business and Trade
11 Recommendation Fourth Report - Performance of investme…

Publish and mandate transparency guidelines for freeports and investment zones, including key documents.

In line with the Nolan principle of openness, the Government must (a) publish and (b) require adherence to guidelines on communications and transparency by freeports and investment zones. Those guidelines should ensure that regular updates on the progress of freeports and of investment zones are available to the public. Such …

Department for Business and Trade
12 Conclusion Fourth Report - Performance of investme…

Publish the Freeports Annual Report 2023 and commit to similar investment zone reporting.

The Department for Levelling Up, Housing and Communities must ensure that the Freeports Annual Report 2023 is published forthwith to allow Parliament and the public to judge the progress made on the freeports agenda. It must commit to publishing a similar annual report describing progress on investment zones, when investment …

Department for Business and Trade

Oral evidence sessions

3 sessions
Date Witnesses
10 Jan 2024 Lord Dominic Johnson of Lainston CBE · Department for Business and Trade, The Rt Hon Michael Gove MP · Department for Levelling Up, Housing and Communities View ↗
21 Nov 2023 Ben Bradley MP · Nottinghamshire County Council, Jan Ward CBE · Plymouth and South Devon Freeport, Oliver Coppard · South Yorkshire Mayoral Combined Authority, Steve Foxley · Advanced Manufacturing Research Centre, Thomas O Brien · Liverpool City Freeport, Tom Newman-Taylor · East Midlands Freeport View ↗
24 Oct 2023 Dr Nichola Harmer · University of Plymouth, Dr Patrick Holden · University of Plymouth, Dr Peter Holmes · UKTPO - University of Sussex, Kevin Shakespeare · The Institute of Export and International Trade, Mr James Brougham · Make UK, Professor Steve Fothergill · Sheffield Hallam University, Stephen Marcos Jones · Association for Consultancy and Engineering (ACE) View ↗

Correspondence

4 letters
DateDirectionTitle
16 Apr 2024 To cttee Letter from the Chair of the Independent Review Panel on Teesworks relating to …
26 Mar 2024 From cttee Letter to the Chair of the Independent Review Panel on Teesworks, 18 March 2024
20 Feb 2024 To cttee Letter from the Secretary of State for LUHC relating to Freeports and investmen…
27 Jun 2023 To cttee Letter from the Chair to the Secretary of State for Levelling Up, Housing and C…