Green Freeports Programme: island communities impact assessment

Step three – consultation

Separate consultation events for Island communities/Local Authorities?

No separate islands-specific consultations have been carried out as part of the design of the Green Freeports model. However the consultations and engagement detailed below, have been carried out to either a UK-wide or Scotland-wide audience.

Is there information already gathered through previous engagements? How will you carry out your consultation and in what timescales? What questions will you ask when considering how to address island realities?

SG-UKG joint working

Green Freeports are jointly delivered by the Scottish and UK Governments – with ministers and officials working on an equal footing throughout the selection, set-up and delivery phases. A co-chaired SG-UKG Programme Board was established in 2023 and meets regularly. This is supported by a co-chaired Delivery Group, which also meets regularly and brings together expertise from across a wide range of areas of government including:

• 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
• Directorate for Energy and Climate Change
• 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

Core Departments and Directorates have also been supported by specialist input from agencies including Transport Scotland, Police Scotland, Marine Scotland and Scotland’s Enterprise Agencies

Wider public sector engagement

Local authorities are a key partner within Green Freeport’s local coalitions, and throughout the development and refinement of the Green Freeports model, local authorities have been engaged regularly. This has led to collaboration on and refinements of, for example, the non-domestic rates relief and retention schemes. Local authorities 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 set-up 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

Scottish Government officials have also engaged with COSLA (Convention of Scottish Local Authorities) on programme developments, including on plans for the disbursement of Green Freeports seed capital and revenue funding.

During the bidding phase, local coalitions were invited to submit bids and it was noted that the coalitions should include ports, local businesses, international businesses, academic institutions, and local authorities. As a result, partners in Orkney (supported by the Orkney Islands Council) submitted a bid – which was unsuccessful.

Scotland’s enterprise agencies have also been engaged extensively through the development of the Green Freeports 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 phase, 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. 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: 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-government organisations, 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 other 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. The UK Government analysed and reflected on 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 focused on the contribution that placed-based economic development initiatives can make to building a green, jobs-focussed recovery. It also sought views on whether the UK Government’s Freeports proposal might enhance that activity, and if it could better reflect Scotland’s needs and priorities. The consultation, 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. Analysis of the responses (‘The contribution of place-based economic development zones’) combined with those from the earlier Freeports consultation, informed decisions to include clear requirements to mitigate displacement, embed Fair Work First principles, and build in net zero objectives.

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 changes 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