AN estimated £547 million in business rates generated through the Inverness and Cromarty Firth Green Freeport (ICFGF) will be reinvested in jobs, skills development, and infrastructure improvements within the region, the Highland Council has said.
Highland councillors have endorsed an investment plan which sets out a framework for the management and spend of retained non-domestic rates (rNDR) from the green freeport.
Scottish and UK governments have agreed the Highland Council will retain 97.5% of non-domestic rates from new businesses within the Inverness and Cromarty Firth tax free sites for a period of 25 years, to be used on projects which create long-term local and regional benefits.
Forecasts show rNDR income rising from an estimated £4 million in 2027/28 to £28 million annually by the end of the 25‑year period. Overall total forecast revenue is estimated at £547 million.
A report which came before today’s full council meeting outlined how these funds will be reinvested to support five strategic objectives of:
- Skills and employment
- Productivity and innovation
- Global trade opportunities
- Regeneration and housing
- Net zero transition
The rNDR Fund will be managed by the Highland Council and overseen by the Inverness and Cromarty Firth Green Freeport and its board.
Council members have expressed strong support for the direction of the fund. Feedback identified that housing and workforce development should be early priorities, but members also highlighted the importance of community and sports facilities and transport and infrastructure projects, including active travel schemes.
The investment plan will now be finalised, with work beginning on an annual delivery plan that will set out the process for submitting applications to the fund.
Derek Brown, chief executive of the Highland Council, said, “The investment of rNDR will be guided by five core objectives – to maximise long-term sustainable, inclusive economic net gains to the Highlands; to enable further private and public investment; to deliver infrastructure and services that would not otherwise occur; to support the transition to a low-carbon economy and to promote inclusive growth across the Freeport travel-to-work area.
“The rNDR fund provides a significant opportunity to invest and deliver longer-term, beneficial outcomes for the Highland economy and communities, including opportunities to ‘forward invest’ to accelerate infrastructure and socio-economic improvements.”
Calum MacPherson, chief executive of Inverness and Cromarty Firth Green Freeport, added, “The most visible benefits of the Green Freeport are the physical signs, such as expansion of our ports, work for local firms and job creation. We’re often asked about the legacy for communities more broadly, particularly for people not involved in the local supply chain or ports. The rNDR fund represents a powerful opportunity to ensure the benefits of the Green Freeport are felt right across the region for many years to come.”
Tax site occupiers have a ten-year period to claim Freeport tax reliefs, which have a duration per occupier of five years. Scottish Government, as guarantor, provides the value of the retained rates directly to the accountable body during this period. Retained non-domestic business rates from existing businesses within the tax sites will not be included in the fund.
