The UK, leveraging its Brexit freedoms, has established eight freeports aimed at rejuvenating industrial areas with jobs and investment. This initiative is part of a broader strategy to level up the nation, but now it’s time to maximize their potential.
Historically, the UK has led technological innovation. The Industrial Revolution, with its railways, viaducts, cranes in Belfast, and warehouses in Manchester, ushered the country into the modern era. Alongside these advancements, wages, living standards, and life expectancies saw significant improvements.
As the global race to net zero intensifies, Britain stands poised to spearhead a new green industrial revolution. Freeports are already fueling our burgeoning net zero economy. For example, in Teesside, a £300 million investment by SeAH in a wind turbine factory has catalyzed an additional £4 billion in contracts, creating numerous high-skilled, high-wage jobs. In Hull, Pensana is processing rare earth metals crucial for turbines and electric vehicles, while the Solent is preparing to capture carbon and develop new hydrogen fuels for decarbonizing shipping.
Introducing a green premium to the tax breaks in investment zones could attract more low-carbon investments. Easing planning restrictions and simplifying environmental assessments could also promote on-site renewable energy generation, lowering energy costs for businesses and easing the grid’s burden.
Time is of the essence as other nations are already capitalizing on the green revolution. The UK’s competitors are making significant investments under the United States’ Inflation Reduction Act and the European Union’s Green Industrial Plan. Without swift action, the UK risks falling behind in developing tomorrow’s technologies.
However, the typical tax and spend approach advocated by the left is not the answer, as it tends to increase taxes and borrowing, devalue the pound, and reduce the UK’s global competitiveness. In contrast, fiscal responsibility, a fundamental conservative principle, emphasizes a moral duty to future generations. Conservatives should leverage the UK’s new regulatory freedoms to attract private capital, lighten the load on taxpayers, and ensure that polluters bear the costs. Freeports are integral to this strategy.
Alkemy Capital Investments plc (LON:ALK) is focussed on developing projects in the energy transition metals sector. Tees Valley Lithium is developing a state of the art lithium hydroxide plant at Teesside, UK. Tees Valley Graphite is developing the UK’s first natural graphite active anode material processing facility at the ‘plug-and-play’ Wilton International Chemicals Park.
