Hotel plan for Carlisle's Hoopers department store

The prospect of the former Hoopers department store in Carlisle city centre being turned into a hotel was discussed at the budget meeting for Carlisle City Council last night.

Speaking before the meeting, deputy city council leader Gareth Ellis said: “There is a desire to build a hotel on the site and there are a number of businesses interested in doing that. It follows what we want to deliver, in terms of economic growth for the area.

“We also want to see if we can use some of the money from the High Street Fund to assist projects like this.”

Located on the corner of Castle Street and St Mary’s Gate, the site has no fixed guide price but has in the past been listed for £1.5 million.

The five-floor building is a focal point of the city centre’s historic quarter and a prime site for future developments.

It was originally the family-owned Bulloughs department store, for almost 100 years, before it then became Hoopers in 2006.

It then reopened briefly as a discount designer outlet but has now stood empty for more than six years.

Also being discussed at the meeting were the plans to turn Carlisle Airport into a freeport.

It was revealed in September that the government had agreed to consider proposals by Carlisle’s airport to become a freeport.

Businesses within a freeport zone can import, store products within the zone - for example in a warehouse - and re-export products duty-free.

It means firms are only asked to pay taxes when the goods arrive in their destined country.

“We want to turn the airport into a freeport post Brexit,” explained Mr Ellis, Conservative councillor for Belah and Kingmoor.

“What would happen is we would set up a custom-free area where things come tax free into the airport, manufactured and shipped from abroad, and exported back out again.”

Mr Ellis said he hopes the project would attract more businesses into the area, helping to boost the city’s economy.

The freeport model is used extensively in the USA, with businesses benefitting from little or no checks, as well as tariff and tax benefits.

An advisory panel was launched in September, which was set up to spearhead the idea, with airports and ports across the UK invited to become one of up to 10 freeports.

Under EU law the freeport model is highly restricted, which is largely down to EU tariff and competition rules.

Now the UK is free from the rules of the European Union, it is now free to explore the idea more extensively.

No airports in the UK currently hold freeport status.

The Government has agreed to consider proposals by Carlisle’s airport to become a freeport post-Brexit.

Following the Chancellor of the Exchequer’s spending round on Wednesday, in a debate, city MP John Stevenson asked if Sajid Javid would support the airport’s bid.

Mr Javid said he would be happy to look at its plan.

Businesses within a freeport zone can import, store products in a warehouse and re-export products duty-free.

The model is used extensively in the USA, with businesses benefitting from little or no checks, as well as tariff and tax benefits.

An advisory panel was launched earlier in the month by the Government, which will spearhead the idea, with ports and airports across the UK to be invited to bid to become one of up to 10 freeports.

Mr Stevenson said: “The Chancellor clearly recognises the importance of growing the economy, because it is through a growing economy that we can afford public services.

“I understand that, with a view to achieving growth –particularly in the north – there have been discussions about the possible creation of freeports in the north of England. Carlisle Lake District Airport, which is owned by the Stobart Group and ​which commenced commercial flights recently, has the ambition to create an airport freeport. Would the Chancellor support that?”

Mr Javid replied: “We have accelerated our work on the freeports generally, which is being led by the Trade Secretary and the Chief Secretary to the Treasury. However, I should be happy to consider a proposal for an airport freeport.”

Stobart Group and Mr Stevenson have written to the Government, saying they think the freeport model could be a success because of the large amount of land surrounding the airport, north of Carlisle, Stobart Group’s experience and the airport’s strong transport links.

Mr Stevenson said: “We don’t have any in this country, because of EU legislation. It would be a section of the airport where there are lower taxes for goods.

“It would enable businesses to export out of the airport without tax barriers.

“There is a perception that some of the airports in the North East should be freeports.

“We have worked closely with the airport; we have been discussing the possibilities. That area of the airport would be attractive to businesses, especially for imports and exports.

“We have a business the size of Stobart that could invest.

“It is in the north and it is an area that needs economic development.

“It could bring long term security to the airport, which has had its challenges.

“It will bring in employment, it adds to the economy and to the development of our region.”

Freeports could help to counter any post-Brexit trade complications, according to Mr Stevenson.

“In a post-Brexit world Britain can set its own Europe trading policy, which could include freeports.

“There has been an advisory panel set up to advise the government on freeports, which demonstrates the government is serious about them.

“Our challenge is to make them think about Carlisle airport as one area to be used as a freeport.”

No airports in te UK currently hold designated freeport status.

Labour’s parliamentary candidate for Carlisle Ruth Alcroft, said: “It’s good to see John Stevenson recognises the potential of Carlisle and the north and is now actively promoting it.

“However, it must be recognised that a freeport, while designed to offer some kind of safety net post-Brexit, is no silver bullet.

“We run the risk of global corporations moving from one low tax area to another to exploit tax breaks and reduce workers’ rights. These are not necessarily the long term investments and high quality, secure jobs we are looking for.

“The public needs to ask themselves: we had the legislation for freeports in place until 2012. This government let it lapse. If it is such a great thing, why was that?

“Other countries seek free trade deals rather than prioritising freeports. Why is this? Of course it is great to see our infrastructure being used to boost our Cumbrian economy, but let’s find out what it means for us in practice.”

During the spending round, Mr Javid promised an “infrastructure revolution” with £490 million pledged for road, rail and bus links.

He said he was “turning the page on austerity” with a £13.4 billion spending spree.

He said: “From the motor highway to the information highway, we’ll settle for nothing less than an infrastructure revolution.

“To keep spending under control we will of course set a high bar for funding projects, and they’ll have to show real value for money, with credible delivery plans and budgets, starting with the Government’s rapid review of HS2.”