Spezial Economic Zones - Gated Communities 4 the super rich

The serious allegations and revelations about Teesworks and the Teesside Freeport have sparked renewed attention to the dangers of freeports and other kinds of special economic zone (SEZ), as has recent Government confirmation that eight new investment zones will commence operation in the 2024-25 financial year, with a further five in prospect.

This attention is vitally important.

Although a recent Government-commissioned review of Teesworks did not find evidence to justify allegations of corruption or illegality, it did identify multiple defects in decision-making and transparency, as well as questioning whether it provides value for money.

Many commentators, including anti-corruption experts, consider that this review was insufficient in its powers and scope, and are dubious about its failure to identify corruption. Certainly, it is unlikely that this is the end of the matter as regards the Teesside freeport or others, and investigative journalism by Private Eye, especially, continues to undertake outstanding reporting of this unfolding story.

However, these important issues are being obscured by the swirl of errors, confusions, and hyperbole which has reappeared around UK freeports and ‘charter cities’ or ‘states within a state’ – particularly on social media but also crossing over into the traditional media.

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Labour has no apparent plans to dissolve SEZs if it comes to power, it is being suggested that the party is ‘complicit’ in what is claimed these SEZs consist of.

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The fact that so many exaggerated or inaccurate claims about UK SEZs are gaining traction is a testament to the Government’s failure to communicate its policy and, no doubt, to the lack of trust that many people have in its intentions.

But, even if the Government’s communication was perfect, it would not be able to disguise the genuine and serious criticisms of its SEZs which exist:

- their questionable economic value
- their questionable value for money,
- their capacity to lead to corruption and criminality
- their lack of transparency and accountability

- and their capacity to dilute or over-ride local planning controls.