Teesside Freeport is the largestFreeport in the United Kingdom, where special arrangements apply fortaxation andcustoms.[1] It was launched in 2021.[2]
The freeport covers 4,500 acres across multiple sites including:
South Tees Development Corporation, which predates the freeport, has made substantial investments at the Teesworks site.[4][3]With the announcement of the freeport, and the anticipated demand for land within it, the programme of demolition and remediation work was accelerated.
In 2022 work began on a £400m factory forSeAh Wind to makeoffshore wind turbine bases on part of the Teesworks site acquired by Teesworks Ltd for £100. Other projects have been announced.[3]
A Net Zero Teesside Power project broke ground in 2023. NZT Power is a gas-fired power station with carbon capture and storage capability, aiming to become a de-carbonised industrial cluster.[5]
Politicians and the media have criticised Teesworks for possible pollution of theTees in the context of an unexplainedshellfish die-off near Teesside and for a perceived lack oftransparency in the transfer of assets.[6]
In October 2021 work started on the 1.2 km South Bank Quay project to provide a deep water facility. In the same month thousands of dead crabs and lobsters were washed up on theTees estuary and beaches along the North-East coast of England. The deaths were first reported inSeaton Carew,Redcar andSeaham.[7] Some people blamed dredging of the Tees, but this was not supported by government enquiries.
The corporate structure behind the freeport includes multiple subsidiary companies of which several have local business owners Chris Musgrave and Martin Corney as directors. MPs have alleged that significant assets have been transferred to these directors without a formaltendering process as is usual for public-sector development projects in the UK.[8]Middlesbrough MPAndy McDonald, citing aPrivate Eye article in Parliament, said that the only economic growth being delivered at Teesworks "is into the accounts of Ben Houchen's pals, Messrs Musgrave and Corney". He alleged that for a £100 investment, the developers would "benefit to the tune of £100m".[9]
The government announced an independent inquiry in May 2023.[10] On the same day the freeport's director, Nolan Gray, announced that he was leaving; theTees Valley Combined Authority (TVCA) said that the role which was created in 2021 was no longer necessary and that Gray would not be replaced.[11] The inquiry reported in January 2024. It found no evidence of corruption, but criticised lack of transparency.[12][13][14]
Some people would have liked more involvement on the part of theNational Audit Office.[10]