Finance Bill — New Clause 25 — Reporting on the Impact of New Arrangements on Each Freeport — 24 May 2021 at 20:15

The majority of MPs voted not to require a report on the impact of each freeport on matters including job creation, tax raising, tax avoidance, tax evasion and criminality.

MPs were considering the Finance Act^[1][2][3].

The proposed new clause rejected in this vote was titled: Reporting on the impact of new arrangements on each freeport and stated:

• (1) The Chancellor of the Exchequer must separately review the impact of sections 109 to 111 and schedules 21 and 22 of this Act on each of the eight freeports in England, and on each of any further freeports that may be established anywhere in the United Kingdom, and lay a report of that review before the House of Commons annually for each designated freeport.
• (2) Each review for each freeport under this section must estimate the expected impact of sections 109 to 111 and schedules 21 and 22 on—
• (a) job creation within the site(s) and relative to the wider subregion and region within which the freeport is located; and for freeports in Scotland and Wales, relative to the economy of that country as a whole;
• (b) revenue from corporation tax and stamp duty land tax within the site(s) designated as the freeport relative to the wider subregion and region within which the freeport is located; and for freeports in Scotland and Wales, relative to the economy of that country as a whole;
• (c) levels of criminal activity in respect of fraud, corruption, taxation, customs, duty and excise within the site(s) designated as the freeport relative to the wider subregion and region within which the freeport is located; and for freeports in Scotland and Wales, relative to the economy of that country as a whole;
• (d) the extent to which the mix of industries operating in that freeport reflects the aspirations in that respect set out by the freeport bid as approved by the Government;
• (e) an assessment of the change in skills and productivity of the workforce in the subregion and region in which the freeport is located relative to the wider subregion and region within which the freeport is located; and for freeports in Scotland and Wales, relative to the economy of that country as a whole;
• (f) the level of staffing for HMRC and the UK Border Force in respect of that freeport; and
• (g) departmental spending by HMRC and other departments on enforcement in respect of that freeport.’

Clauses 109-111 provided for the designation of, and special tax treatment for, freeports.^[2][3]

--

• [1] Parliament's webpage on the Finance Bill, Parliament.uk
• [2] Explanatory notes to the Finance Bill, 11 March 2021, Parliament.uk
• [3] Finance Bill, as introduced, 11 March 2021, Parliament.uk

Debate in Parliament |