Teesside’s Freeport Fiasco: Another Scandal as Airport Flops and Public Cash Vanishes

£70M in public funds squandered 90% profits to private firms, and just 5,600 jobs created vs. 18,000 promised. Taxpayers lose, cronies win.

Teesside International Airport, the jewel in the crown of the Teesside Freeport, hit a new low on August 14, 2025, when it shut down mid-flight, forcing an Alicante-bound plane to divert to Newcastle. The excuse? An air traffic control glitch. The reality? Yet another chapter in a scandal-ridden saga of public money squandered, private profits pocketed, and promises broken. The Teesside Freeport, sold as a Brexit-powered engine for “levelling up,” is looking more like a taxpayer-funded gravy train for the well-connected.

A Black Hole for Public Cash

Since Tees Valley Mayor Ben Houchen brought the airport back into public ownership in 2019 for £40 million, taxpayers have been bled dry. Another £30 million in bailouts followed, propping up a ghost town of empty terminals and half-baked business parks. The Tees Valley Monitor reports £70 million of public funds flushed into refurbishments and contracts, with little to show but a shiny new departure lounge for non-existent passengers. https://www.teesvalleymonitor.com/teesside-airport-closes-as-alicante-flight-approaches

In 2023/24, the airport posted a £3 million operating loss, despite Houchen’s spin about “profits” through creative accounting.

This isn’t just mismanagement—it’s a pattern. The Teesside Freeport, which includes the airport, has devoured an estimated £560 million in public investment. Yet, a 2024 House of Commons report reveals Freeports nationwide have created a measly 5,600 jobs, a 77–96% shortfall against hyped-up targets. Teesside’s promise of 18,000 jobs and a £3.2 billion economic boost? Pure fantasy, with the airport’s single warehouse and trickle of flights as damning evidence.

Private Profits, Public Pain

While taxpayers foot the bill, private developers are laughing all the way to the bank. Sources on X and from Private Eye claim 90% of Teesside Freeport profits—particularly from the lucrative Teesworks site—flow to private firms, with developers like Chris Musgrave and Martin Corney reaping the rewards. The airport mirrors this racket: contracts handed to politically connected companies, conflicts of interest among directors, and zero transparency. The Tees Valley Monitor has slammed the secrecy, noting public bodies are stonewalled when seeking financial details. Sound familiar? This is thanks to ‘secondary legislation’, which was embedded in the 25-year licenses for the Tories’ rollout and Labour’s continuation of 12 Freeports and 74 SEZs. Secondary legislation means zero Parliamentary or public scrutiny on deregulated free zones. It’s cronyism on steroids, with Houchen’s inner circle thriving while Teesside’s workers get crumbs from the table.

Labour MP Andy McDonald has called Freeports a “displacement scam,” shifting jobs from places like Tyneside rather than creating them. When jobs do materialise, they’re often low-wage, low-skill gigs in logistics, not the “high-tech” roles promised. The airport’s business park, meant to be a magnet for investment, sits largely vacant. Meanwhile, the Freeport’s tax breaks and land deals fatten private portfolios, leaving locals adorning hard hats, side-by-side photo ops with PMs, MPs, and Mayors, but zero prospects.