Green Freeports Programme: business and regulatory impact assessment (BRIA)

Section 2: Engagement and information gathering

Engagement approach

The below summarises engagement undertaken between 2020 and 2024 to inform the Green Freeport policy model.

SG-UKG joint working, and engagement with other devolved governments

Green Freeports are jointly delivered between Scottish Government and UK Government – with ministers and officials from both the Scottish and UK Government having an equal say throughout the selection and appraisal and delivery process. A jointly co-chaired SG-UKG Programme Board has been established in 2023 and meets quarterly. This is supported by a jointly co-chaired Delivery Group, which meets every 6 weeks and brings together official expertise across the following parts of government:

• Scottish Government
• Directorate for Economic Development
• Directorate for Jobs and Wellbeing Economy
• Directorate for Local Government and Housing
• Directorate for International Trade and Investment
• Directorate for Tax and Revenues
• Directorate for Net Zero and Forestry
• Directorate for Offshore Wind
• Directorate for Lifelong Learning and Skills
• UK Government
• Ministry for Housing, Communities, and Local Government
• HM Treasury
• HM Revenue and Customs
• Department for Business and Trade
• Department for Science, Innovation and Technology
• Department for Environment, Net Zero, and Energy Security
• Home Office

Core Departments and Directorates have also been supported by specialist input from agencies including Transport Scotland, Police Scotland, and Marine Scotland.

With Green Freeports being developed after English Freeports, we have had the opportunity to learn from UKG experience and implement lessons in the Scottish approach. Green Freeports have also been on a similar timeline to Welsh Freeports, which has provided opportunities to collaborate on common issues with Welsh Government.

Wider public sector engagement

Local authorities form a key partner within a Green Freeport’s local coalition, and throughout the negotiation and refinement of the Green Freeports model, local authorities have been engaged extensively. This has led to collaborative refinements of the non-domestic rates relief and retention. Local authorities heavily supported bid preparation for their respective Green Freeports, and post-selection the four local authorities directly involved have continued to be engaged directly on all aspects of the setup phase. This includes economic development, planning, and tax officers based within the four local authorities, which are:

• Falkirk Council
• Fife Council
• City of Edinburgh Council
• The Highland Council

Scotland’s enterprise agencies have been engaged extensively through the development of the Green Freeport model. Scottish Enterprise, Highlands and Islands Enterprise, and South of Scotland Enterprise were all engaged during early consultation of the policy. Thereafter, following selection of the two Green Freeports, both Highlands and Islands Enterprise and Scottish Enterprise have played supporting roles for both Green Freeports, and will continue to be proactively engaged into the delivery phase.

Business Roundtables

In advance of the formal bidding stage, the Scottish Government engaged with a range of businesses and business associations via roundtables conducted between 2021 and 2022. A range of organisations with interest were engaged, and with their expertise helped to inform the design of the Green Freeports model. A non-exhaustive list of organisations includes:

• Port and Logistics
• Scottish Ports Group
• British Ports Association
• UK Major Ports Group
• Port of Cromarty Firth
• Forth Ports
• Aberdeen Harbour
• Peel Ports
• Glasgow Airport
• British International Freight Association
• Tank Storage Association
• Multi Modal Logistics UK
• Road Haulage Association
• Port of Inverness
• Net Zero
• Offshore Renewable Energy Catapult
• Oil and Gas UK
• European Marine Energy Centre
• Scottish Hydrogen and Fuel Cell Association
• Digital
• ScotlandIS
• Institute of Ecommerce
• Technology Scotland
• Manufacturing
• Chemical Industry Association
• Life Sciences Scotland Industry Leadership Group
• Scottish Engineering
• Scotland Food and Drink

Consultations

Three public consultations have been undertaken between 2020 and 2023, informing the overall Green Freeport model.

1) Freeports Consultation: multiple public consultations have informed the design of the Green Freeport model. In 2020, from February to July, the UK Government ran the Freeports Consultation on the proposal to establish Freeports. The consultation received 364 responses from port operators, business associations, public sector bodies, non-governmental organisations (NGOs), and individuals. Findings suggested respondents welcomed the emphasis on regional economic geography and regeneration, the flexibility of the customs model, and the focus on innovation. Ports and businesses shared how Freeports could contribute to their sector’s success and future growth potential, while many local authorities and public-sector bodies were optimistic about the potential of Freeports to help transform local economies. However, some respondents, including several non-government organisations and individuals, expressed views about potential negative impacts on areas including port security, safety, workers’ rights and the environment. Some respondents also expressed views around economic displacement – particularly in deprived areas – and the risk of Freeports being used for tax evasion or money laundering. Through a rigorous review process, UK government analysed and reflected on all respondents’ views and used them to develop the Freeports model, which later was adapted further in the design of the Green Freeports model as applied in Scotland.

2) The Contribution of Place-Based Economic Development Zones Consultation: between November and December 2020, the Scottish Government ran a public consultation which asked the about ways the Freeport model could be adapted in the Scottish context. The consultation, ‘The contribution of place-based economic development zones’ received 39 responses from businesses, local authorities, and from other interested groups. Whilst concerns were identified over potential displacement of economic growth and interactions with the timing of UK Government’s development of Freeports, respondents were supportive of a ‘Scottish Freeport’ approach tied to Scottish Government policies on inclusive growth, fair work and the just transition to net zero. These findings, combined with those from the earlier Freeports consultation, informed decisions to include clear requirements to mitigate displacement, embed the Scottish Government’s Fair Work First principles, and build in clear decarbonisation objectives (supported by carbon accounting).

3) The Land and Buildings Transaction Tax: Proposed Relief for Green Freeports Consultation: between March and May 2023, Scottish Government ran a public consultation on the proposed regulatory change to enable Land and Buildings Transaction Tax relief on designated Green Freeport tax sites. The consultation invited comments on draft legislative clauses for the relief, and received 10 responses. The land and Buildings Transactions Tax - proposed relief for Green Freeports: SG response and summary of responses