No new freeports to come in Budget after ‘comms cock-up’

The mistake arose due to a confusion between the freeport sites themselves and the multiple customs areas that are contained within them.

The chancellor, Rachel Reeves, would be confirming five new customs areas within existing freeports, the official said, not new freeports.

Freeports are areas near shipping ports or airports where imported goods are free from tariffs. Firms in these areas also pay lower national insurance on new employees, and lower property taxes.

They are designed to boost economic activity like trade, investment and job creation.

Reeves will still reveal plans for a separate investment zone in the East Midlands, which was also announced on Friday.

The Financial Times, which first reported the error, said Friday’s announcement, made while the prime minister was at the Commonwealth heads of government summit in Samoa, had caused “bafflement” among firms and officials involved in the freeports, as they had not heard of any plans.

While the mis-briefing is unlikely to have any concrete impact on investment plans, it will add to the sense that the operation in Downing Street is not running as smoothly as it should.

Earlier this month, there were reports of friction between No 10 staff, and Sue Gray quit her role as Prime Minister Sir Keir Starmer’s chief of staff.