THE STUC vowed to remain “eagle-eyed” on freeports today after the Scottish and UK governments joined forces to extend tax breaks.

The Tory freeports initiative, rebranded as “green freeports” in Scotland, gives millions of pounds in tax relief to firms operating in the zones.

Granted with the aim of stimulating economic growth, the relief applies to everything from land and buildings transaction tax to National Insurance and customs charges.

So far only two freeports operate in Scotland: at the Forth and Cromarty Firth. Glasgow city region and the north-east of Scotland are expected to follow a similar route by becoming so-called investment zones. A new agreement between the governments will see all their tax breaks extended to 2034.

STUC general secretary Roz Foyer is unconvinced about the merits of tax giveaways to big business.

She said: “At a time when the Scottish and UK governments should be looking to build a fairer tax system to support our public services, they are instead extending these tax breaks for companies.

“For as long as our governments remain locked into this approach, the STUC and trade unions in Scotland will be watching eagle-eyed for any company attempting to undermine workers’ rights or displacing jobs and economic activity elsewhere in the country.

“Proper trade union recognition is the only way to ensure employment standards are protected and good jobs delivered.”

The UK government said: “The Chancellor [Jeremy Hunt] confirmed at the spring Budget that freeport tax relief will be extended by five years to help maximise new investment by giving businesses long-term support on their large-scale projects at freeport sites.

“Advancing freeports is just one way in which the UK government is encouraging growth in Scotland.”

SNP Deputy First Minister Shona Robison welcomed the new agreement.