Thames Freeport - Britain's Trading Future

[ 53 ] deliver this ambition. In addition, it must balance risk and reward across the partners and understand the value that each partner can bring alongside any synergies that can be achieved through a collaborative working model. The Government has not been prescriptive about a particular governance solution — there is, for example, no requirement for a freeport governance body to be incorporated. A legal entity may be required to take ownership of public and private assets and so create a better proposition for investment; and in some cases, a statutory entity such as a development corporation may add value by enabling land assembly and planning powers. Therefore, this is a time for imaginative and innovative thinking from the public and private sectors working alongside each other. This, in turn, will need the development of shared objectives and a shared understanding of the commercial, policy and operational drivers that each operate under. For Thames, it already has a unique selling point given the significance of its maritime trade and its importance to the capital. This will be a critical pillar of the strategy and showcase the opportunity to investors, developers and shippers. A key milestone for all the freeports at this early stage is the articulation of the case for investment. There is an expectation from Government that their business cases will be ready by the end of this year, and these must clearly set out how the freeport will drive new investment, and regional growth and employment. This must also include the rationale for calculating the economic benefits which are expected to accrue from this investment and demonstrate the additionality of these benefits to counter the argument that they are merely displacing investment which would have occurred elsewhere in the region or nationally. Grant Thornton’s involvement in work for the Midlands Engine and the development of a business case for the creation of a development corporation indicates what is possible in a complex stakeholder environment. Grant Thornton worked closely with an Oversight Board comprising public and private sector leaders and engaged in regular meetings with the Ministry of Housing, Communities & Local Government (MHCLG) and Homes England to ensure the proposition delivers optimal outcomes for the sub-region. The Outline Business Case submitted to MHCLG in March 2021, makes the case for the creation of a new kind of Development Corporation that will be locally led and create 84,000 new jobs and 10,000 new homes. Thames Freeport must also be open to different and potentially blended financing solutions. Grant Thornton’s discussions with private funders in recent months show that there is an appetite to support major infrastructure projects with long- term finance, and an interest when engaging in projects to consider environmental, social and governance criteria as well as commercial return. Alongside this, the Government has signalled its desire to support investment in the freeport areas to drive growth. This may take the form, for example, of the retention of business rates by local authorities to finance borrowing predicated on the expected business growth in the area. This would be guaranteed for 25 years, giving councils the certainty they need to borrow in order to invest in regeneration and infrastructure that will support further growth. In the operational management of the freeport there are also opportunities to do things differently to the older freeport models. For example, there is the potential to use virtual rather than physical boundaries which may significantly change the way in which port logistics are managed and create a new model of port operations. If the last 18 months has taught us anything, it is the power of technology to enable smart working. Challenges, past and present It is acknowledged that some groups have valid concerns around freeports. It is important that these concerns are addressed, and Government provides direction to the freeports in the assembly of their business cases to tackle these issues head-on and build on the feedback from the Government’s consultation process conducted in 2020. Through a collaborative approach, the benefits that the freeports can deliver can be maximised whilst the risks are carefully managed to ensure the programme delivers for all. Four challenges have been identified, which will be critical to manage —Wayne Butcher, Public Percentage of working age population qualified to NVQ4+ 16-64 Thurrock Havering Barking & Dagenham 42 to 43.67 32 to 41 30.45 to 31