Chancellor backs '£1bn' plans at inland freeport

Rachel Reeves has cited economic growth as her priority

The chancellor has backed investment plans at England's only inland freeport near East Midlands Airport.

In a speech outlining plans for the UK's economic growth on Wednesday Rachel Reeves said developing a logistics and manufacturing site near Castle Donington in Leicestershire was "a clear demonstration of the UK's strength as a hub for innovation".

The freeport scheme, given formal government approval in 2023, seeks to use tax incentives to attract investment to three areas.

These are East Midlands Airport and Segro Logistics Park in Leicestershire, the former Ratcliffe-on-Soar power station site in Nottinghamshire, and East Midlands Intermodal Park near Toyota in Etwall, Derbyshire.

The scheme at Castle Donington is currently in the hands of North West Leicestershire District Council planners.

Manchester Airports Group (MAG), which owns and operates East Midlands Airport, has announced Prologis as a "global development partner" to advance the Leicestershire plans.

MAG said the deal would "unlock £1bn of investment" around the freeport tax site and create 2,000 jobs.

Tax incentives will be used to attract firms to the inland freeport

Reeves said: "Economic growth is the number mission of our Plan for Change to raise living standards in every part of the country.

"This investment in East Midlands Freeport is a clear demonstration of the UK's strength as a hub for innovation, will create thousands of new jobs driving growth in the region and strengthen the UK's position as a leader in advanced manufacturing and logistics.

"Together we are kick-starting our economy, driving growth and getting more money in people's pockets."

If approved, MAG said the scheme would bring up to 2,000 new jobs, £132m of economic growth per year to the wider East Midlands, and contribute £9m of additional business rates.

Prologis will also deliver a dedicated centre for logistics job training and education for people living nearby.

Prologis is to establish a training centre as part of the plans

Airport managing director Steve Griffiths said the deal was "an exciting step forward for growth in and around the airport".

Prologis UK's regional head Paul Weston said the site would become "a high-impact gateway that drives economic growth, innovation and employment opportunities across the Midlands".

Tom Newman-Taylor, chief executive of East Midlands Freeport, said: "This is a positive first step in realising the full potential of the freeport's tax sites which, when fully developed, will be transformative for the East Midlands economy."