Government accused of aiding tax avoidance with post-Brexit freeports plan
Boris Johnson salutes from the deck of the tall ship Tenacious, which is moored at Woolwich, in east London. Photograph: Dominic Lipinski/PA. - Credit: PA Archive/PA Images
Labour has accused the government of reviving a Thatcherite plan to introduce new freeports in the country, which they say will aid tax avoidance.
The government says the ports, where UK taxes and tariffs will not apply, will create thousands of jobs, but they have dismissed allegations that it will lead to people dodging taxes.
Ministers have launched a consultation process aimed at naming the locations of the sites by the end of the year, so they can be up and running by 2021 after the UK leaves the EU.
Shadow chancellor John McDonnell said the move was an initiative of a "far right" government.
"This is the revival of a failed Thatcherite plan from the 1980s, designed to cut away at regulation and our tax base.
You may also want to watch:
"There is very little solid evidence that so-called free ports create jobs or boost economic growth, showing this up as another ideological move from a far-right government.
"This plan only represents a 'levelling-up' for the super-rich, who will use free ports to hoard assets and avoid taxes while the rest of us feel the effects of under-funded public services."
Most Read
- 1 Susanna Reid takes on Priti Patel over government's gaslighting of public on coronavirus
- 2 Brexiteer musician accused of hypocrisy after demanding No 10 help bands with EU visa
- 3 Tory minister admits UK rejected EU's music visa offer in order to 'take back control' of borders
- 4 PMQs: Ben Bradshaw calls out Boris Johnson over Brexit lies
- 5 ‘Don’t haste ye back’ - Nicola Sturgeon's perfect farewell message to Donald Trump
- 6 Piers Morgan calls on Priti Patel to resign over missing crime records fiasco
- 7 Tory MPs vote down Lords bid to protect NHS from post-Brexit trade deals
- 8 9 of the best tweets of Donald Trump leaving the White House
- 9 Boris Johnson narrowly avoids defeat over vote on trade deals with genocidal regimes
- 10 Trump caller hangs up on James O'Brien after failing to cite ex-president's 'truths'
But chief secretary to the Treasury Rishi Sunak denied the plan will facilitate tax avoidance, and said a US trade boss reassured them they are safer than other ports.
"I absolutely don't think they do and obviously you have stringent rules," the Tory minister told Sky News.
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.