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Vaughan Gething MS, Minister for Economy

First published:
6 March 2024
Last updated:

The Welsh Government is continuing to work with the UK Government and partners across Wales to make sure our planned freeports and investment zones are supported to harness Wales’ abundant economic potential.

We have agreed with the UK Government that both investment zones in South-East and North-East Wales will be extended from five years to 10. Each will be provided with a £160m funding envelope from 2024 to 2034, which can be used flexibly between spending and tax incentives, subject to ongoing co-design of the proposals and agreement of delivery plans with the Welsh Government and the UK Government. As part of a package of tax incentives, investment zones in Wales will be able to retain 50% of additional non-domestic rates generated within designated areas for reinvestment in the investment zone. 

Alongside the agreement to extend investment zones from five years to 10, we have also agreed to extend the window to claim freeport tax reliefs for both the Anglesey and Celtic freeports from five to 10 years until 2034. The extension is subject to a review in 2028, this will provide assurance that sufficient progress is being made by each freeport. Extending the tax relief window for freeports will provide long-term support to businesses looking to invest, delivering growth and jobs, alongside helping to regenerate our communities.