Freeports will be created in England to help to boost the economy - here’s how they work

Chancellor Rishi Sunak has revealed plans to create freeports in England.

During his Budget announcement on Wednesday 3 March, Mr Sunak unveiled the locations of eight new “special economic zones with different rules to make it easier and cheaper to do business”.

The chancellor said the freeports would help to boost the economy.

There are about 3,500 of these zones around the world which employ 66 million people.

So, what are freeports, why is the chancellor bringing them back - and where are they going to be in England?

Here is everything you need to know.

What is a freeport?

Freeports are typically located around shipping ports or airports.

Also known as free trade zones, they are designated areas where a country’s usual tax and tariff rules do not apply.

Goods in freeports can be imported, manufactured and exported without being subject to checks, paperwork or tariffs.

For example, raw materials could be imported from abroad and made into whole products for exporting overseas without any charges being paid.

Taxes would only be paid if the goods left the freeport and were moved elsewhere in the UK.

There were seven freeports operating in the UK between 1984 and 2012, including in Liverpool, Southampton the Port of Tilbury, the Port of Sheerness and Prestwick Airport.