Transparency data

Freeports programme: accounting officer assessment

Updated 6 March 2024

Background and context

On 2 August 2019, the International Trade Secretary announced the creation of up to 10 new Freeports across the UK, of which 7 could be in England, to boost international trade and economic growth. We launched the Freeports competition and published the prospectus on 16 November 2020. A total of 18 bids were received. These bids were assessed by expert officials in line with the requirements set out in the prospectus. Annex A sets out this process in detail.

All bids were received by the 12pm 5 February 2021 deadline except for two key maps that one bidder submitted via email at 12.02pm. The cross-departmental SCS Freeports Programme Board agreed that this was a de minimis delay likely caused by technical difficulties and therefore endorsed the decision to accept the maps.

The process resulted in the list of appointable bids, which was presented to ministers.

To guide their decision-making and in line with the prospectus, ministers were also provided with 7 context-sensitive considerations relevant to the objectives of Freeport policy and with a decision-making framework. This is set out in Annex B.

The Chancellor and Secretary of State for the Department for Levelling up, Housing and Communities (formerly Ministry of Housing, Communities and Local Government) met on 26 February. Ministers received an information pack ahead of the meeting. Officials attended and minuted this meeting, recording ministers’ rationales for selecting bids and rejecting others. See further information on the decision-making.

The Freeports competition determines which bids are selected to progress. Successful bidders will be offered resource Departmental Expenditure Limit (RDEL) funding to establish local governance arrangements and to prepare robust business cases. These business cases will be later assessed by the department prior to decisions on the allocation of shares of the available capital Departmental Expenditure Limit (CDEL) funding.

The prospectus originally set out that successful bidders would have the opportunity to access a share of £175 million of CDEL. However, Autumn Budget and Spending Review 2021 confirmed that up to £200 million would be available to deliver 8 Freeports in England.

Propriety

The bidding process ensured that the choice of recipients was rational and based on clear criteria relevant to the policy objective. The criteria was fair and reasonable in general and the competition operated in a way that did not unduly favour any places.

DLUHC officials agreed compliant scoring criteria for the selection of Freeports. These criteria were published in the bidding prospectus at the launch of the competition. All the criteria are directly relevant to the policy objectives of the Freeports programme. The recusals process was not triggered.

Overall assessment: My assessment is that the propriety test is satisfied.

Value for money

A robust bid assessment process helped secure value for money through ensuring that the selected bids meet the objectives of the Freeports policy. Value for money of the full investment pot will come through the assessment, selection and approval of funding for Freeport bids proposed by individual ports. This will be done through the assessment and clearance of business cases.

Overall assessment: My assessment is that the value for money test is satisfied.

Feasibility

Feasibility was evaluated as part of officials’ assessment. Bids were assessed for their strategic fit against the 3 policy objectives. Through this, bids that presented credible plans that could feasibly achieve the policy objectives were rewarded. Bids were assessed against several deliverability considerations and the level of private sector support they have secured or are likely to. Ministers received an overarching score for each bid against deliverability and private sector involvement and a summary of bids’ strengths and weaknesses with respect to each.

Overall assessment: My assessment is that the feasibility test is satisfied.

Regularity

The selection process has no direct impact on the regularity test and there are no particular implications of any of the shortlisted or selected bids on the legislation and regulatory requirements.

Legislation will be needed to set up the tax, customs and VAT benefits. Responsibility for this legislation rests with HM Treasury and HM Revenue & Customs.

Overall assessment: My assessment is that the regularity test is satisfied.

Conclusion

The Freeports programme is a robust and effective use of public resources. As the accounting officer, I considered the Freeports assessment on 21 June 2021 and approved it. The delay between completion of the assessment and publishing this summary was to align with onboarding to the GMPP portfolio.

I have prepared this summary to set out the key points which informed my decision. If any of these factors change materially during the lifetime of this project, I undertake to prepare a revised summary, setting out my assessment of them.

This summary will be published on the government’s website (GOV.UK). Copies will be deposited in the Library of the House of Commons; and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.

Jeremy Pocklington