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Government pressed to reconsider bid for Port of Dover to become freeport after P&O makes 800 employees redundant

The government has been pressed to reconsider a bid for the Port of Dover to become a freeport in the wake of the news that ferry company P&O is to make 800 employees redundant.

The plea is one of a series of proposals outlined in a joint letter to Chancellor Rishi Sunak by the leader of Kent County Council Roger Gough, Dover council leader Trevor Bartlett and the town's MP Natalie Elphicke.

P&O ferries moored at the Port of Dover. Picture: Barry Goodwin
P&O ferries moored at the Port of Dover. Picture: Barry Goodwin

The letter, seen by KentOnline, says they have “huge concerns” about the adverse effect caused by the decision by P&O to axe 800 staff.

It suggests the government could help mitigate the impact of the job losses by supporting a scheme that was turned down by ministers.

Freeports exempt goods imported from abroad from tariffs that are normally paid to the UK government on arrival.

They also benefit from lower property taxes and companies operating within them pay less taxes, such as VAT.

The letter says both the Port of Dover and Eurotunnel were “very disappointed” that the government’s criteria meant it was ineligible to apply for freeport status.

KCC leader Roger Gough
KCC leader Roger Gough

“We are ready to discuss this again and develop an Extended Economic Zone/ Special Area Freeport serving cross-Channel freight which will promote the significant economic development of the coastal areas of East Kent which still remains a very deprived area but has huge potential for positive investment and a commensurate boost to national productivity.”

It describes the proposal as ‘oven ready.’

The letter also calls on the Chancellor to bring forward plans for a major road scheme to improve access to the port.

The Dover Access Road is one of about 30 nationally earmarked for investment between 2025 and 2030.

“We repeat our request for urgent and accelerated funding of the RIS3 programme Dover Access Road upgrade.

"This is a vital piece of roads infrastructure necessary to secure road resilience, and quality of life for residents across Dover.”

The project would involve dualling the A2 between Lydden and the port.

The government is also warned the potential for traffic disruption is damaging not just to Dover but the county as a whole.

The letter added: “This incident is another reminder that these critical communities and economic gateways demand greater investment and that ongoing uncontrolled disruption across our transport network is bad for business and bad for Britain.”

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