Hidden away in the depths of the UK Budget (delivered on Wednesday, 26 November) was some good news for Scottish maritime and future energy interests. The Chancellor of the Exchequer has confirmed that the Forth Green Freeport (FGF) has received final UK government approval of its full business case (FBC) following approval from the Scottish government in October.
Forth Green Freeport, anchored by Forth Ports properties in the Port of Leith at Edinburgh, and the Grangemouth complex further upstream on the River Forth, received the good news as part of a long package of measures within a Budget section on local growth and devolution. Within the same measures, the UK government also approved the business cases for the “Flintshire & Wrexham Investment Zone” and Anglesey Freeport, both in Wales, and announced a proposed Northern Ireland Enhanced Investment Zone. The industrially struggling Port Talbot, the former blast furnace and port area, has been awarded GB£4.2 million for the remediation of brownfield supporting the Harbourside Innovation District, aligned to the Celtic Freeport, to help unlock further investment.
Memorandum of Understanding
Rachel Reeves, the UK Chancellor of the Exchequer, has confirmed approval of the Forth Green Freeport (FGF) full business case. Approval of the FBC is an important step towards unlocking GB£25 million of seed capital funding to support the reindustrialisation of the freeport area to attract investors and deliver major economic benefits for Scotland.
Following the approval announcement, the Forth Green Freeport Chair, Dame Susan Rice DBE, the three local civic administrations (Edinburgh, Fife and Falkirk) and both governments in Edinburgh and London will sign a Memorandum of Understanding to allow the release of the multimillion-pound seed capital money. The projects which have been identified for development to attract inward investment will then begin.
Private and public investment
Focusing on offshore wind, hydrogen, sustainable fuels, modular manufacturing and logistics, FGF will support the re-industrialisation of Central Scotland and large-scale economic regeneration over the next decade. “This is important for Forth Green Freeport as we successfully gain final government approval of our Full Business Case,” explained Sarah Murray, the chief executive of FGF. “The next step to fully activate the Forth Green Freeport is the signing of a Memorandum of Understanding to kick start the initial projects. Importantly, the seed capital will be match funded by project leads. We look forward to signing this soon to begin delivery of this important long-term initiative benefiting Scotland and the rest of the UK.”
Forth Green Freeport, as designated by the devolved Scottish government, became operational on 12 June 2024. It is set to attract new businesses and new jobs, aided by a suite of tax and customs incentives to deliver economic benefits for Scotland and the UK at large. According to sources at the Freeport, a detailed economic impact assessment has projected that it will generate GB£7.9 billion of private and public investment over the next decade and boost GVA (gross value added) by GB£8.1 billion. This investment is projected to create up to 34,500 well-paid and skilled jobs, with around 16,000 of these being direct employment in the FGF’s target sectors and tax sites.