The following article is a guest piece for Skwawkbox from David Powell aka @europeanpowell. He is an artist/activist raising awareness about the duopoly’s post-Brexit corporate takeover of the UK via SEZs, Freeports, and AI Growth Zones. You can read more of his work for the Canary here.
When Rachel Reeves appeared at a Revolut corporate event to announce £110bn in fintech investment, few noticed the extraordinary symbolism. Here was the Chancellor of the Exchequer showcasing a company under active Financial Conduct Authority restrictions for failing to properly handle fraud—restrictions that prevent Revolut from operating as a fully trusted banking institution. Yet Treasury was presenting it as the crown jewel of UK financial services success. This wasn’t awkward optics. It was a signal: in the new economic model being constructed across Britain, institutional integrity is subordinate to investment announcements. Standards bend to deal flow. And underneath the spectacle lies something far more alarming, the systematic transfer of democratic governance to corporate control through a nationwide proliferation of deregulated “free zones.”
The Blackstone Shell Game
The Revolut event was part of a broader £110bn announcement that exemplifies how this system operates. Buried within that figure was £100bn attributed to Blackstone’s “promise” to invest in UK financial services. But as Private Eye revealed, £10bn of that £100bn had already been announced weeks earlier at Keir Starmer’s “investment summit” for a data center in Blyth, Northumberland.
The same £10bn investment, counted twice. First as data infrastructure, then repackaged as fintech investment. Like announcing you bought a car, then announcing you bought transportation, then announcing you acquired a vehicle with wheels.
But the accounting gymnastics obscure something more fundamental: what Blackstone is actually doing. As Private Eye notes, much of this “investment” involves acquiring UK businesses using high-interest debt financing. Those businesses then service the debt that Blackstone used to buy them, generating returns of around 16% for Blackstone’s funds. This isn’t productive capital formation. It’s leveraged extraction dressed up as investment, and the UK government is rolling out the red carpet for it.
The Blyth Data Center: A Case Study in Zone Mechanics
The Blyth facility sits inside an AI Growth Zone, one of the newest categories in Britain’s bewildering taxonomy of special economic zones. AI Growth Zones were launched by Keir Starmer’s government in January 2025, with bidding opened in February. By September, Blyth and Cobalt Park had been designated, with over 200 bids submitted and the bidding process remaining open indefinitely.
What does AI Growth Zone designation actually mean? According to the government’s own Industrial Strategy Zones Action Plan, published in June 2025, these zones receive:
Streamlined planning processes, including Mayoral Development Orders that bypass traditional local authority controlsGrid connection acceleration, with a “connections accelerator service” prioritizing zone sitesAccess to the £600 million Strategic Sites Accelerator fund25-year business rate retention deals“Regulatory sandboxes” enabling “regulatory experimentation”—a euphemism for suspending normal rules
In other words, Blackstone gets to build its data center with planning fast-tracked, grid priority access, potential public subsidy, and relaxed regulatory oversight. UK businesses will then pay Blackstone to use the facility. Public risk and resources underwrite private profit extraction.
The Taxonomy of Confusion
AI Growth Zones are just one piece of a deliberately complex puzzle. Since Brexit, Britain has seen an explosion of special economic zone types:
12 Freeports (including 2 “Green Freeports” in Scotland, 2 in Wales)74 Investment Zones (including “Enhanced Investment Zones,” with bespoke arrangements for Northern Ireland)45 Enterprise Zones (established under previous governments)AI Growth Zones (200+ bids, indefinitely open)Food Enterprise ZonesDefence Growth ZonesUniversity Enterprise Zones
Each has different governance structures, tax arrangements, reporting requirements, and legal frameworks. Some overlap geographically. Many have sub-zones within them. And in June 2025, the Labour government announced it would rebrand all Freeports and Investment Zones as “Industrial Strategy Zones” while maintaining their separate operational frameworks.
Labour want you to believe that this is ‘administrative streamlining’, when in reality it’s taxonomic warfare designed to make tracking accountability, measuring outcomes, or following money flows nearly impossible for journalists, researchers, and the public.
The Post-Brexit State Aid Free-For-All
Why does this matter now? Because Brexit removed the constraints of EU state aid rules, which prohibited governments from providing unlimited subsidies to specific corporations in specific locations due to the competitive distortions this creates in the single market.
Britain is no longer bound by these rules. The government can now channel unlimited public resources to private entities through these zones without triggering competition investigations. Labour’s June 2025 Industrial Strategy Zones Action Plan boasts that zones have already attracted £6.4 billion in private investment, but the structure involves public money flowing as subsidies that generate private returns. Under EU rules, this would have faced intense scrutiny and likely been blocked.
This is the economic model that Brexit was designed to enable: a post-democratic framework where public resources are mobilized to serve corporate investment vehicles, with minimal accountability or competitive oversight.
Governance by Secondary Legislation
The deregulatory mechanics operate through secondary legislation, statutory instruments that bypass Parliamentary debate, public consultation, and press notification. This is why most people have never heard of free zones, despite them covering increasingly large swaths of British territory and economic activity.
Each zone operates through complex public-private partnerships where corporate entities gain effective governance powers. Zone boards, while nominally including local representatives, are structured to prioritise investment delivery. Trade union representatives are “invited” to some boards but given no statutory voice or veto power. Crucially, residents living within zones have zero formal participation in decision-making processes that determine planning, environmental standards, labour regulations, and economic priorities in their communities.
Local democracy is systematically bypassed. Planning decisions that would normally require extensive community consultation get fast-tracked through Mayoral Development Orders or other streamlined processes. Environmental assessments are expedited. Labour protections become negotiable in the name of “flexibility.”
The Five Pillars of Zone Architecture
The zone system operates through five interlocking mechanisms:
Regulatory Arbitrage
Zones create geographic carve-outs where normal planning, labour, and environmental oversight can be weakened. The promise of “regulatory sandboxes” explicitly enables experimentation with reduced standards. What gets tested in sandboxes tends to become normalized.
Accountability Diffusion
Complex public-private partnerships make it nearly impossible to trace decision-making or assign responsibility. Is the zone operator accountable? The local authority? The Mayor? The national government? The corporate “anchor tenant”? Accountability vanishes into the structure.
Political Capture Through Investment Announcements
Once a zone is designated and tied to multi-billion-pound investment figures, political pressure builds to approve whatever projects emerge. Rejecting a proposal becomes “threatening investment” and “killing jobs.” The announcement itself becomes a form of political capital that constrains future democratic choice.
Financial Engineering Over Productive Investment
As the Blackstone example demonstrates, what counts as “investment” increasingly means leveraged acquisitions and debt-service extraction rather than productive capital formation. Zones attract financial engineering that shows up in impressive headline figures but may actively harm long-term economic health.
Systematic Complexity as Governance Strategy
The proliferation of zone types and overlapping jurisdictions isn’t bureaucratic accident, it’s a deliberate strategy to prevent oversight. By the time a researcher maps the taxonomy, new zone types have been announced and existing ones rebranded.
The Consolidation Plan: Industrial Strategy Zones
The June 2025 Industrial Strategy Zones Action Plan represents the next phase. While claiming to “simplify” the landscape, it actually proposes consolidating multiple zone types under single governance structures controlled by Mayors in England and devolved governments elsewhere.
The plan states that where Enterprise Zones fall within Industrial Strategy Zone boundaries, “they should be incorporated into the overall governance of the cluster.” This isn’t simplification, it’s layering. Each incorporated zone brings its own legal framework, funding streams, and commitments. The result is governance structures of staggering complexity, nominally under democratic leadership but operationally driven by corporate partnership agreements locked in for decades.
Critically, the plan commits the entire apparatus of government to serving zone priorities. It states these zones “can struggle at times to bring the full weight of government to bear” and promises to mobilize all state functions, planning, energy grid, skills training, innovation support, financial resources to ensure zones can “deliver to their full potential.”
This is the state reorganising itself around corporate investment vehicles. National priorities become whatever serves free zone development. Democratic governance becomes an obstacle to be removed for the lucrative opportunities of private capital.
Bipartisan Collusion
This isn’t a party political issue, it’s a cross-party project. Labour quietly signed off on the Conservative freeport rollout while publicly dismissing them as “not a silver bullet for the economy.” Both parties collaborated on expanding the system immediately after Brexit. The transition from Conservative to Labour government has accelerated rather than slowed zone proliferation.
The Industrial Strategy Zones Action Plan, published under Labour, doesn’t critique or reform the Conservative zone model. It expands and entrenches it. The rebranding obscures continuity of purpose: constructing a post-democratic economic governance framework that transfers sovereignty from democratic institutions to corporate entities.
Zone Fever: From Citizens to Serfs
We are witnessing the emergence of what is known as “corporate feudalism”, a system where economic zones operate as semi-autonomous fiefdoms under corporate governance, with residents reduced to the status of economic inputs rather than democratic citizens.
The zones determine:
What gets built (planning)Who gets hired and under what conditions (labour “flexibility”)What environmental standards apply (regulatory sandboxes)How public resources get allocated (25-year rate retention and subsidy agreements)Which regulations get enforced (zone-specific oversight regimes)
Residents within zones have no formal voice in these decisions. They can’t vote out zone boards. They can’t challenge partnership agreements. They exist within governance structures designed explicitly to bypass democratic accountability in favor of “investment delivery.”
This is what “Zone Fever” means: the proliferation of deregulated carve-outs that increasingly cover the national territory, transforming citizens into subjects of corporate governance regimes that operate outside normal democratic controls.
The American Dimension
The Blackstone example is significant not just for its financial engineering but for what it represents geographically. Blackstone is a US private equity firm. Much of the “investment” flowing into UK zones comes from US financial entities. The governance frameworks being constructed grant these entities extraordinary powers over British economic life, in my book this is blatant vassalism.
We are witnessing the transfer of British sovereignty to foreign powers dressed up as economic policy. Post-Brexit Britain hasn’t reclaimed economic autonomy, it’s created the legal architecture for unprecedented foreign corporate control over domestic governance. The zone system enables US financial capital to operate with fewer constraints than it would face in the United States itself, while accessing UK public subsidy and infrastructure support.
The irony is acute: Brexit was sold as “taking back control.” The zone system represents its polar opposite, a systematic transfer of control from democratic institutions to foreign corporate entities operating through deregulated geographic carve-outs.
What Comes Next
Zone proliferation continues accelerating. AI Growth Zone bidding remains open indefinitely. New zone types will likely emerge tied to future “industrial strategies.” Each announcement will feature impressive investment figures, ministerial photo opportunities, and promises of thousands of jobs.
The underlying mechanics will remain obscured by taxonomic complexity, rebranding exercises, and the lack of democratic oversight built into zone governance. Accountability will continue dissolving into public-private partnerships. Standards will keep bending to deal flow.
Unless this system faces serious political resistance, the trajectory is clear: an increasingly large share of British economic life will operate under foreign corporate governance regimes that bypass democratic accountability, channel public resources to private profit extraction, and transform citizens into economic units within zones they have no power to shape.
The left has been largely absent from this fight, perhaps because the zone system seems too technical, too complex, too boring to merit attention compared to more dramatic political battles. This is a catastrophic misreading. The zone system represents the most fundamental restructuring of British economic governance in generations, the construction of a post-democratic framework that will constrain progressive economic policy for decades.
You cannot build a democratic economy if large portions of national territory operate under corporate governance beyond democratic control.
You cannot pursue an industrial strategy if **“**strategy” means mobilising all state functions to serve private investment vehicles.
You cannot achieve equitable development if planning, labour standards, and environmental protections are negotiable zone by zone.
The Revolut Symbol
Rachel Reeves appearing at that Revolut event, celebrating a company under regulatory restrictions for fraud control failures, wasn’t merely poor judgment. It was an accurate representation of the system being constructed.
In the zone model, institutional integrity is secondary to investment performance. A company that can’t be trusted with basic fraud controls can still be showcased by the Treasury because it’s in the “right” sector with the “right” investment figures. Standards become obstacles to be managed through regulatory sandboxes. Accountability becomes something to diffuse through governance complexity.
This is the economic model Britain is building in the post-Brexit landscape: a system where democratic control, regulatory integrity, and public accountability are systematically subordinated to corporate investment imperatives operating through an ever-expanding network of deregulated zones.
The Private Eye article that exposed the Blackstone accounting shell game represents crucial journalism. But the story is vastly larger than one dubious investment announcement. It’s about the entire governance framework being constructed behind the complexity—a framework that represents nothing less than a corporate coup against democratic economic sovereignty.
The question now is whether enough people will understand what’s happening in time to stop it.
References and Further Reading
Private Eye, “Cash Points” (October 2025 issue, exact date TBD)UK Government, “Industrial Strategy Zones Action Plan” (June 23, 2025) https://www.gov.uk/government/publications/industrial-strategy-zones-action-plan/industrial-strategy-zones-action-planFinancial Conduct Authority restrictions on Revolut banking license https://www.fca.org.uk/ (Search: Revolut restrictions)BBC Panorama investigation into Revolut fraud reports (2024) https://www.bbc.co.uk/programmes/m001xrplLithuanian authorities fine Revolut founder Nik Storonsky €5m for money laundering control failings https://www.ft.com/content/[verification needed]UK Government, “AI Growth Zones” announcement (January 2025) https://www.gov.uk/ (Search: AI Growth Zones)Blyth and Cobalt Park AI Growth Zone designation (September 2025) [News sources to be verified]Analysis of UK Freeport and Investment Zone locations https://commonslibrary.parliament.uk/ (Search: Freeports Investment Zones map)EU State Aid rules and UK exemption post-Brexit https://ec.europa.eu/competition/state/_aid/overview/index/_en.htmlResearch by @Europeanpowell on UK free zones proliferation https://twitter.com/Europeanpowell
This investigation is based on analysis of public government documents, Private Eye reporting, and ongoing research into the UK*’*s post-Brexit special economic zone architecture. All claims regarding government policy are sourced from official publications. Claims regarding specific corporate behaviour are based on published reporting and regulatory public records.
For democratic governance to function, citizens must understand how power is being reorganised. This article represents an attempt to make visible what policy complexity is designed to obscure.
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