Green Freeports Programme: equality impact and Fairer Scotland Duty assessment

Key Findings

During the policy design phase, the main equalities related risks identified were the risk of jobs being displaced from other parts of the UK to the Green Freeport areas and the risk of workers’ pay and conditions being eroded as experienced in freeports in other parts of the world. Impacts in these areas would affect a wide range of people, but those with protected characteristics would be at particular risk of negative impacts. Both risks were addressed by building mitigations into the policy design which will be covered in more detail in the next section of the document.

The formal EQIA/FSDA undertaken for the Green Freeports programme identified mainly positive and neutral impacts on equalities groups and people facing socio-economic disadvantage, with a greater impact on some groups than others. It should be noted that many impacts intersect across protected characteristics and therefore individuals may benefit from a range of measures and incentives.

To better understand the key findings, it might be helpful to note that, to deliver on the four key policy objectives of the Green Freeports programme, the Scottish and UK governments set a number of requirements for the Green Freeports (set out in the set up phase guidance) which the Green Freeports can implement in different ways, depending on their set up and circumstances. This includes:

• requirement to embed fair work practices in line with the Scottish Government’s Fair Work First approach - Both Green Freeports chose to implement this by developing Fair Work Charters that all businesses in tax and customs sites have to sign
• requirement to set out objectives and processes for the use of retained non-domestic rates (rNDR) in line with set up phase guidance – Both Green Freeports have developed rNDR strategies that set out themes and potential projects for rNDR investment, some of which are expected to contribute to opportunities to advance equality (e.g. skills, workforce development, regeneration)
• requirement to provide a detailed skills plan, including initiatives to enhance the local skills base and align the skills available in the local labour market to investors and sectors being targeted. – Both Green Freeports have developed such skills plans and chose to also set up skills funds that will support the delivery of the plans

Age

The EQIA identified positive and neutral impacts of the Green Freeports programme on people based on age.

In their skills plans, the Green Freeports have set out plans to advance equality of opportunity by supporting young people entering the workforce and older people to up-skill or re-skill to support the alignment of skills in the workforce with the GFP target sectors. This is expected to help reduce de-population within the local areas as it will allow younger and older people to remain in their communities whilst developing their skills.

Additional investment in local infrastructure, as set out in their retained NDR strategies and seed capital projects, is expected to improve access routes to jobs and key services which is expected to benefit younger and older people who may more heavily rely on public transport. However, further consideration at project level will be needed to ensure minimal impact of associated construction work which can affect older people who are more likely to have mobility issues.

Disability

The EQIA identified positive impacts of the Green Freeports programme on people based on disability.

A higher proportion of people in the Highlands have a long-term health problem or disability compared to the Scottish average. People with disabilities are more likely to be unemployed and are more likely to encounter barriers that limit their ability to access work and training opportunities. The Green Freeports are planning the following measures which are expected to support people with disabilities accessing the opportunities created through the Green Freeports programme.

In their Fair Work Charters, the Green Freeports have set out aims for inclusive hiring practices and a proactive approach to recruiting people with disabilities which is expected to have a positive impact on eliminating discrimination. They have also made plans for flexible working options, various skills bursaries/scholarships for disadvantaged groups and collaboration with local employability partners to assist with career progression, which is expected to advance equally of opportunity for people with disabilities. Commitments in the Fair Work Charters to address pay gaps as well as implement diversity and inclusion policies and training are expected to promote better relations between equality groups.

Additional investment in local infrastructure, as set out in their retained NDR strategies and seed capital projects, is expected to improve access routes to jobs and key services which is expected to benefit people with disabilities. However, further consideration at project level will be needed to ensure minimal impact of associated construction work.

Sex

The EQIA identified positive and neutral impacts of the Green Freeports programme based on sex.

The industries targeted for investment into the Green Freeports have traditionally employed fewer women. Women are more likely to face barriers to access work and up/reskilling opportunities, due to insufficient transport links and the inability to travel due to caring commitments. The Green Freeports are planning the following measures which are expected to support women accessing the opportunities created through the Green Freeports programme.

The Green Freeports aim to provide various skills bursaries/scholarships for disadvantaged groups and other specific initiatives which are expected to advance equality of opportunity for women and girls. The Green Freeports have made plans to address pay gaps as well as implement diversity and inclusion policies and training which is expected to promote better relations between equality groups.

Commitments to provide flexible working options are expected to have a positive impact on women who are statistically more likely to have childcaring and/or caring responsibilities. Additional investment in local infrastructure, as set-out in the Green Freeports’ retained NDR strategies and seed capital projects, is expected to improve access routes to jobs and key services for those who may rely more heavily on public transport such as women.

Gender reassignment

The EQIA identified neutral impacts of the Green Freeports programme on people based on gender reassignment. The Green Freeports have set out plans to implement diversity and inclusion policies and training which is expected to promote good relations as well as raise awareness and understanding generally. However, there is limited quantitative and qualitative evidence available for this protected characteristic at the time of writing. Further consideration could be given to opportunities to advance equality of opportunity for trans and non-binary people at seed capital project level.

Sexual Orientation

The EQIA identified neutral impacts of the Green Freeports programme on people based on sexual orientation. The Green Freeports have set out plans to implement diversity and inclusion policies and training which is expected to promote good relations as well as raise awareness and understanding generally. Further consideration could be given to opportunities to advance equality of opportunity for people identifying as LGBTQ+ at project level.

Pregnancy and Maternity

The EQIA identified positive and neutral impacts of the Green Freeports programme on people based on this protected characteristic. Pregnant people face barriers to employment and training opportunities due to commitments and maternity/parental leave.

The provision of flexible working options, included in the Fair Work Charters, and funding for skills bursaries/scholarships opportunities for disadvantaged groups are expected to advance equality of opportunity for people within this protected characteristic. The Green Freeports also aim to address pay gaps as well as implement diversity and inclusion policies and training which is expected to promote better relations between equality groups.

Race

The EQIA identified positive and neutral impacts of the Green Freeports programme based on race. The industries targeted for investment into the Green Freeports are (in Scotland) historically not racially diverse. People in deprived areas tend to be more racially diverse.

The Fair Work Charters commit businesses to seek to understand current demographics of the existing workforce and look for ways to make their workplaces and procedures more inclusive. Both Green Freeports plan to make information, particularly on job opportunities, available in languages other than English. Additional investment in local infrastructure, as set out in their retained NDR strategies and seed capital projects, is expected to improve access routes to jobs and key services benefiting those in/around Green Freeports who may rely more heavily on public transport such as those from deprived areas, who tend to be more racially diverse. The above constitute small steps to advance equality of opportunity on the grounds of race but on balance the policy impact is considered neutral as the impact of these steps is expected to be relatively small.

The implementation of diversity and inclusion policies and training, and potential increased diversification of the local populations due to migration from both the UK and countries of origin of international investors is expected to promote good relations among people of different ethnicities.

Religion or belief

The EQIA identified neutral impacts of the Green Freeports programme on people based on religion or belief. The Fair Work Charters mandate some measures that have potential to advance equality of opportunity and promote good relations, for example flexible working options and the implementation of diversity and inclusion policies and training. However, on balance the policy impact is considered neutral since the impact of the measures is expected to be relatively small and no measures specifically focused on religion and belief are planned.

Marriage and Civil Partnership

The EQIA identified neutral impacts of the Green Freeports programme on people based on marriage and civil partnership. The implementation of diversity and inclusion policies and training as mandated by the Fair Work Charters is expected to promote good relations as well as awareness and understanding. However, on balance the policy impact is considered neutral since the impact of this measure is expected to be relatively small and no specific measure focused on this protected characteristic is planned.

Socio- Economic Disadvantage

The Fairer Scotland Duty Assessment identified that the Green Freeports programme will have positive and neutral impacts on individuals based on socio-economic status. People in deprived areas tend to be more socio-economically disadvantaged, have a lower than average income and rely more on public transport. The substantial number of jobs expected to be generated by the GFPs presents an opportunity to improve household incomes in deprived areas and increase the average income in the GFP areas overall. The majority of pro-active skills and fair work initiatives and measures planned by the Green Freeports are aimed at realising this opportunity.

The Fair Work Charters are expected to encourage the creation of pathways into employment for new employees, including apprentices, and require businesses to commit to having a positive impact on people with protected characteristics and socio-economic disadvantage. They also commit businesses to providing each employee and worker, including apprentices, with secure employment and fair pay, at a minimum the rate of the Real Living Wage. This is expected to benefit those facing socio-economic disadvantage in particular. The Green Freeports, through their skills plans, aim to provide funding for bursaries and scholarships to support people to go into study, who otherwise would be discouraged for financial and non-financial reasons.

Retained NDR will be allocated across various workstreams such as regeneration, infrastructure investment and placemaking, reflecting local needs such as improved housing provision and public and private transport networks. This is expected to benefit people facing socio-economic disadvantage who may rely more heavily on public transport and face difficulties accessing housing.

Human rights

Human rights have been considered throughout the EQIA/FSDA. A number of potential negative impacts of the activities of the Green Freeports that could affect certain economic, social, cultural and civil rights were identified. However, mitigations as noted above, have been identified and planned for these potential negative impacts and are expected to avoid interference with human rights as much as possible. Where mitigation is not possible, additional interventions might be necessary to achieve the objectives of the Green Freeports programme - promoting regeneration and high-quality job creation and promoting decarbonisation and a just transition to net zero, which is in the public interest.