Solent Freeport has welcomed a new tax benefits extension which came into force this summer.

The previously agreed five-year window has been extended to 10 years, until September 2031.

It is a boost for businesses investing and hiring new employees in or connected with Solent Freeport.

The move will deliver benefits to businesses to stimulate investment and provide greater certainty to investors to maximise the programme’s impact.

The tax reliefs available for eligible businesses are:

Enhanced structures and buildings allowances

Enhanced capital allowances for plant and machinery

Secondary Class 1 National Insurance contributions relief for eligible employers on the earnings of eligible new employees up to £25,000 per annum for up to three years

Stamp Duty Land Tax relief

Business Rates relief

Freeports encourage new investment and job creation, and this measure is expected to have a positive economic impact on the areas whose tax reliefs have been extended.

Brian Johnson, chair of Solent Freeport, said: “We welcome the tax relief window extension which will further reassure businesses, investors and developers that investment in the freeport will help realise its potential and drive ongoing economic growth across our wider region.

Solent Freeport has three tax sites, covering a combined 430 hectares of prime development land. These are:

Southampton Water, comprising a range of unique business clusters

Navigator Quarter, offering flexible, modern spaces for innovative companies

Dunsbury Park, a prime industrial and manufacturing business park

Solent Freeport is bringing about an innovation revolution in maritime, autonomy and green growth.

Anchored around the port cities of Portsmouth and Southampton, the Solent is driving a powerful £7.7 billion maritime economy, making the Solent a thriving hub for the world’s marine and maritime sector.

Freeports were announced in March 2021 with the aim to rebalance regional economies in disadvantaged parts of the UK by promoting regeneration and job creation, laying the foundation for establishing long-term key economic assets.

This enables freeports to create an attractive business environment with the aim of rebalancing local economies by building new clusters in sectors of the future, spearheading our journey to Net Zero, and creating thousands of long-term, high-quality jobs for local people.

Solent Freeport will enable the region to capitalise on its strengths in a highly competitive global market and ensure the unique geographic advantage of the region is maximised for UK plc. A strong track record of international trade through the Solent already evidences credentials as the nation’s global gateway.