NORTHERN ports could become the country’s engine for growth under plans drawn up by MP Rishi Sunak.

The Richmond MP said creating one or more "free ports" in the North of England could be key to re-balancing the North-South divide and boost manufacturing in areas with some of the UK’s greatest economic problems.

New tariff-free trade zones around ports, such as Teesport and the Port of Tyne, would allow manufacturers on site to import and export without paying any duty and customs charge.

Mr Sunak said the availability of the former SSI steel plant site at Redcar – directly adjacent to Teesport – was potentially a "massive opportunity" for Teesside if the land was zoned as a free trade area.

He said: "There are 1,400 acres of industrial land right next door to one of the most modern ports in the country. While the site has still to be cleaned up, it represents a great manufacturing opportunity for the area."

Already successful in the USA, he said "free ports" would provide a fast response to Brexit that would increase manufacturing output, reinvigorate the North, and promote trade.

Free ports are areas that, although inside the geographic boundary of a country, are considered outside the country for customs purposes. This means that goods can enter and re-exit the port without incurring usual import procedures or tariffs – incentivising domestic manufacturing.

In his report, written for the Centre for Policy Studies think tank, Mr Sunak says free ports could create more than 86,000 jobs for the British economy and encourage job creation in areas away from London where economic need is higher.

He also said free ports would be easier to set up once the UK left the EU with implementation possible over a short timescale.

Mr Sunak also said the creation of free ports would send an important signal to the rest of the world about its trading and manufacturing intentions post-Brexit.

A British Free Ports programme would take advantage of the number of modern ports in the North of England and, because they were largely in areas of economic deprivation, free port designation would bring the greatest benefits to those most in need.

He said: "There is a clear political desire to rebalance the British economy away from London towards the regions, and away from the services sector towards manufacturing.

"A free ports programme would disproportionately benefit the North and help make a reality of aspirations to create a 'Northern Powerhouse'."