Speaking in Parliament, Mr Sunak confirmed that Liverpool's bid had been approved. He said the eight freeports will have “simpler planning”, “cheaper customs – with favourable tariffs, VAT or duties”, and lower taxes – with “tax breaks to encourage construction, private investment and job creation”.
At freeports, goods can be imported, manufactured and re-exported without being subject to customs checks, paperwork, or import taxes, known as tariffs.
For the domestic market, tax and tariffs will only be payable at the point of sale.
Companies operating in the zone have the benefit of tax relief, such as reduced VAT, for the purchase of land and lower rates of employment tax.
Speaking before Mr Sunak's speech, Jennifer Lee, office senior partner in KPMG’s Liverpool office, outlined the benefits of a freeport in the city, which would extend beyond the limits of the city and across the whole of the North West.
The bid built on the city region’s maritime history and position as a western-facing port.
It will have three ‘tax sites’ in locations at Parkside in St Helens, Wirral Waters and 3MG in Halton - representing "a major opportunity to attract investment and strengthen the region’s position as a hotbed of innovation".
She said it will also build on the city region’s manufacturing capability in automotive, biomanufacturing and chemicals.
Ms Lee said: “The upcoming Budget is one of the most anticipated in living memory and a decision on the freeports designation could be pivotal for growth in the region.
“The plans in the bid would achieve all of the Government’s stated aims
