Freeports are designated economic zones where normal tax and customs rules are relaxed to encourage investment, innovation and job creation. They have a long history and can be found in all parts of the world. In Europe their popularity as hubs for international trade and manufacturing declined with the creation of the EU Single Market and evolving EU regulations. Today some EU-based freeports have found a new purpose as secure storage facilities for high-value assets like art and precious metals.

In the UK, Brexit led to renewed interest in the freeport model as a tool for economic regeneration, especially in port cities with a history of manufacturing, and those with strong offshore, marine and energy industries. The UK Freeport programme was relaunched from 2021 (known as Green Freeports in Scotland) with a package of incentives including tax reliefs, simplified customs procedures, and faster, more accommodating decisions around new building projects.

As of autumn 2025 there are 12 freeports based around UK airports and seaports (see locations). They are often ‘non-contiguous’ with up to three different tax sites that might be physically unconnected. In several places more than one port operates tax sites that collectively form a single freeport, as in the Firth of Forth (ports of Grangemouth, Rosyth and Leith), and the Humber Estuary (locations at Goole, Immingham, Hull and Grimsby).  Each zone has a ‘Freeport governing body' which oversees their development and brings together councils, businesses and other organisations.

For entrepreneurs, freeports may offer opportunities to access funding, locate in tax-advantaged sites, and collaborate within innovation clusters. Eligibility and benefits vary by location and project type.

Further reading

This entry was written by Mike Spicer. Mike is the Founder and Managing Director of Policy Department.