Although the spotlight was on taxation and belt-tightening, maritime commerce did not miss out entirely in the UK Budget, delivered on Wednesday (26 November). Chancellor Rachel Reeves was under political pressure for the heavy tax burden, but did highlight some good news for the ports and logistics sectors.
As part of the Budget’s “local growth and devolution” package, there were investment measures and approvals around the British Isles. These included Industrial Strategy Zones announcements in Wales and Scotland, and the proposal of a co-investment for the Northern Ireland Enhanced Investment Zone.
Regeneration and remediation
The Budget was generally austere, with new measures pushing the tax burden in the UK to 38% of GDP – an all-time high. That figure would have caught the headlines, if not for an unprecedented error by the government’s own watchdog, the Office for Budget Responsibility. The OBR inexplicably accidentally released full details of the Budget – an hour before the Chancellor delivered her speech.
So, a little earlier than anticipated, maritime interests (along with everyone else) learned that, alongside the Budget, the government published its North Sea Future Plan, to support ongoing investment opportunities in oil and gas; a funding package of up to GB£14.5 million in Grangemouth (where the oil refinery recently closed); and funding for a land remediation project in Port Talbot, which is rehabilitating former steel works land for new industry within the Celtic Freeport initiative.
A green freeport given green light
Many projects in the Budget were better described as enabling works, rather than heavy investments. Such was the announcement of the Forth Green Freeport full business case approval. This was, however, an important step towards unlocking GB£25 million of seed capital funding to support the reindustrialisation of the area to attract investors and deliver economic benefits for Scotland (see our full report on the Forth Green Freeport approval).
Green Freeports are a designation made by the devolved Scottish government in Edinburgh, which collaborates with Westminster. The Edinburgh administration has placed a greater emphasis on renewables for its freeport initiative, focusing on sectors such as offshore wind, hydrogen, sustainable fuels, modular manufacturing and logistics.
A bridge not too far down the Thames
By far the biggest project in the Budget, with direct relevance for the maritime sector, is the funding for the Lower Thames Crossing in 2027-28 and 2028-29. The government is committing a further GB£891 million to the bridge, which will provide a road connection between ports on the lower reaches of the river, avoiding congested routes nearer London.
The value of rail freight was conspicuous by its absence in the Budget speech. Rachel Reeves did refer to one project, which is critical to commerce across the North of England. However, it was merely a reannouncement of the Transpennine Route Upgrade – connecting ports such as Hull with Liverpool via Manchester (see our sister service RailFreight.com). Important without question, but already well underway and funded.