Holyrood’s finance committee launches probe into proposed Green Freeports tax relief
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Holyrood’s finance committee has launched a probe into proposed tax relief offered to the twin Inverness and Cromarty Firth and Forth Green Freeports ahead of proposed legislation.
Convener of the Finance and Public Administration Committee Kenneth Gibson will lead the inquiry into whether relief from Land and Building Transaction Tax (LBTT) within freeport tax sites will achieve government aims.
The Scottish and UK governments jointly decided the location of the freeports after a back and forth debate between Holyrood and Westminster over how much they would actually contribute to the economy.
Bosses at the Inverness and Cromarty Firth and Forth Green Freeport whose companies and partners have most to gain from preferential tax treatment have promised tens of thousands of jobs.
Convener of the Finance and Public Administration Committee Kenneth Gibson will lead the inquiry into whether relief from Land and Building Transaction Tax (LBTT) within freeport tax sites will achieve government aims.
The finance committee’s inquiry will aim to test whether the tax breaks on Scotland’s Green Freeports and it has issued a call for views on the proposed LBTT relief saying there are five questions to answer with a response deadline of August 15.
The Scottish and UK governments announced in January 2023 that the Inverness and Cromarty Firth and Forth Green freeports had been jointly selected to become Scotland’s first ‘Green Freeports’.
Mr Gibson said: “The Scottish Government's intention is that Green Freeports will boost innovation and inclusive growth within communities.
“As part of its approach to Green Freeports, the government proposes to provide relief from Land and Building Transaction Tax for certain types of transactions within Green Freeport designated tax sites.
“The Scottish Government believes LBTT relief will support delivery of the Green Freeports programme and encourage long-term investment in these tax sites.
“We’re keen to hear views from a range of individuals and organisations on whether they believe this legislation is necessary and whether it will support the government’s objectives.”
Key Questions
Separately, the Scottish Parliament Information Centre (SPICe) believes that “the headline economic benefits promised” will take “some time to materialise” and as such there are a number of questions that need to be answered.
They are:
How can policy makers ensure that the investment and tax incentives offered to the two Green Freeports will result in economic benefits for their respective regions?
How can policy makers ensure that the benefits are not simply as a result of firms relocating certain activities to benefit from lower costs, but lead to the establishment of deeper supply chains and the siting of high quality manufacturing activity in the regions for the long term?
How will the investment support Scotland’s transition to net zero?
How can the successful bids demonstrate that there have been no deterioration in environmental protections, and that the bids have aligned to the Scottish Government’s fair work agenda?
Should businesses operating outside the low carbon sector be able to operate within the Green Freeport zones? Should there be some form of net zero test for Freeport operations?
