Keir Starmer’s government has been forced into another “humiliating U-turn” after confirming it would not announce any new free ports in its Budget.
Finance Minister Rachel Reeves has announced “next steps” funding for some existing sites, which will receive formal approval to establish customs facilities within their borders. Understood.
Downing Street said through a press release issued on Friday that five new things would be announced in the Budget.
Government officials said there was “total communications confusion” resulting from confusion between the freeport itself and the multiple customs facilities contained within the freeport.
Mr Reeves is also expected to approve plans proposed by the previous Conservative government to create a separate “investment zone” in the East Midlands.
Seven of the UK’s 12 free ports have a number of customs zones that offer certain benefits, such as paying duty only when finished goods are placed on the market and receiving tax breaks when hiring new staff. .
Government officials earlier said five more locations would receive permission to open such facilities within their boundaries under Labor’s plans.
But in a clarification on Sunday night, Downing Street officials said instead the announcement would cover three free ports and five customs zones would be opened across the area.
They said customs facilities would be added to each of the Humber Freeport and Inverness and Cromarty Firth Freeports, while a further three facilities would be introduced at the Liverpool site, bringing the total to six.
The Financial Times, which reported on the story, said the announcement caused confusion among port managers and local mayors, who had no warning of the plans outlined in the press release.
A Treasury spokesperson said the government was “committed to ensuring that customs benefits continue to be provided”.
The Conservative Party accused Labor of making a “humiliating U-turn” that undermined British business confidence.
A Conservative Party spokesperson said: “This Labor government is once again in chaos and chaos.”
On Friday, Number 10 said: “Ahead of Labor’s first Budget in 15 years, the Prime Minister today announced a new investment zone and five new free ports in the East Midlands as part of the Government’s package of measures. We have confirmed that we will rebuild the country by preparing the foundations. ”
During his visit to Samoa, Sir Keir Starmer was asked about the initiative and whether the announcement of five new free ports was an acknowledgment that the Conservative approach had been successful.
The Prime Minister said: “Freeports were introduced by the previous government and what we did was to look at it. Just because it was introduced by the previous government, we will classify it. I didn’t want to have an ideological view of deafness.” Please stop them.
“We’ve looked at them and they’re working well. I think they could work better. So instead of stopping them, we’re going to keep doing it, but they We’re going to make some improvements to make it work even better.