Business figures react to Government decision to not impose further post-Brexit import checks - TS Partners

[Liz Seyi]

Key observers from across UK business have given a largely positive reception to the Government’s announcement that it will not put in place additional checks on goods arriving in the UK from the European Union (EU) – although port operators expressed anger on the basis of having spent time and money preparing for new checks that have now not come to pass.
What has the Government said about dropping further checks?
Brexit Opportunities Minister Jacob Rees-Mogg stated that it would be “wrong to impose new administrative burdens and risk disruption at ports,” and said that the Government would not introduce any additional import controls on EU goods during 2022.
He added that a “new regime of border import controls” would be brought in by the end of 2023.
The announcement means that July will not see the implementation of restrictions on the imports of chilled meats from the EU, or checks at the border on plant and animal products.
Controls that the UK has already introduced will stay in place.
Mr Rees-Mogg said that the decision would “save” businesses £1 billion in extra costs, explaining: “British businesses and people going about their daily lives are being hit by rising costs caused by Russia’s war in Ukraine and in energy prices.
“It would therefore be wrong to impose new administrative burdens and risk disruption at ports and to supply chains at this point.”
“Welcome” clarity, but also concern about “wasted time, effort and money”
Reacting to the news, Tim Morris – chief executive at the UK Major Ports Group, which represents port operators in the country – stated: “Many ports have been working incredibly hard and have invested over £100 million of their own money to build a network of brand new border checks to meet the requirements the Government has been insisting on for several years.
“This now looks like wasted time, effort and money to develop what we fear will be highly bespoke white elephants.
“Government needs to engage urgently with ports to agree how the substantial investments made in good faith can be recovered.”
There was greater positivity towards the announcement, however, from the Food and Drink Federation (FDF)’s head of international trade, Dominic Goudie.
He expressed support for the move on a backdrop of supply-chain disruptions brought by the COVID-19 pandemic and the conflict in Ukraine, stating that “while businesses have already spent a good deal of time and money preparing for the new border regime, we welcome the clarity today’s announcement brings.
“The UK Government must now work with industry to design a new, modern and innovative border system which brings genuine benefits to businesses and consumers.”
Meanwhile, Martin McTague – national chair of the Federation of Small Businesses (FSB) – drew attention to the greater time the delay gave small firms to “prepare for future changes and reassess supply chains”.
He commented: “Imposition of full import controls this summer would have meant yet another burden for small firms which are already wrestling with new trade rules and spiralling operating costs.
“Over the long term, the Government should do its utmost to minimise trade friction with regions all over the globe – increasing the threshold at which import tariffs kick in, and putting small business chapters at the heart of all new free trade agreements.”

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