Tuesday, December 08, 2020
The extra red tape that Brexit will impose on business
Having been sold the idea of leaving the EU on the basis that we will be able to cut the red tape of an out-of-touch and unaccountable Brussels bureaucracy, those who voted for this nonsense may be shocked to discover that any post-Brexit deal with the EU will subject us to rules and regulations we will have no say over, and that no matter what deal is struck (or even if no deal is agreed), UK businesses will become overwhelmed with additional red tape.
As the Independent reports, the man in charge of Her Majesty's Revenue and Customs has warned that British businesses face an “administrative burden” cost of £7.5bn a year in filling out customs paperwork after the Brexit transition period:
Highlighting the additional bureaucracy facing UK firms next year, Jim Harra said HMRC’s estimate of the cost from 2018 “still stands”, with millions of extra customs declarations being made after the transition period.
As London and Brussels continue attempts to thrash out a free-trade agreement with just weeks remaining, Mr Harra reiterated the extra red-tape will apply regardless of the outcome of the negotiations.
Due to the UK leaving the bloc’s customs union and single market, thousands of businesses trading with the EU after the transition period in January will be required to fill in customs declarations for the first time.
The first permanent secretary and chief executive at HMRC said he expected 265 million customs declarations made in the UK each year when the new system is phased in – an increase of 211 million on the number of declarations made in 2017.
Appearing at a session of Westminster’s Treasury Committee, Mr Harra said: “This is largely unaffected by the outcome of negotiations with the EU about free trade agreements because whether there is or not a free trade agreement customs declarations will have to be made when we leave the customs union and therefore the costs, by and large, will apply in either scenario.”
Pressed on reports in the Financial Times earlier this year that the cost of declarations will reach £7bn a year, Mr Harra told MPs: “That is a figure I recognise.”
He added: “My department published figures towards the end of 2019 in which set out what we expected the administrative burden to be of completing additional customs declarations. I don’t think we published any further update to that.
“The figure still stands and that from recollection is about £7.5bn for the cost of the UK side of completing declarations.”
“In 2017 there were 54 million customs declarations made in the UK. At the end of the transition period we would expect that to group to 265 million. That won’t apply straight away because import controls are being staged in over six months, but that’s the rate we expect to see them from July.”
Another fine mess Boris Johnson and his buddies have got us into.
As the Independent reports, the man in charge of Her Majesty's Revenue and Customs has warned that British businesses face an “administrative burden” cost of £7.5bn a year in filling out customs paperwork after the Brexit transition period:
Highlighting the additional bureaucracy facing UK firms next year, Jim Harra said HMRC’s estimate of the cost from 2018 “still stands”, with millions of extra customs declarations being made after the transition period.
As London and Brussels continue attempts to thrash out a free-trade agreement with just weeks remaining, Mr Harra reiterated the extra red-tape will apply regardless of the outcome of the negotiations.
Due to the UK leaving the bloc’s customs union and single market, thousands of businesses trading with the EU after the transition period in January will be required to fill in customs declarations for the first time.
The first permanent secretary and chief executive at HMRC said he expected 265 million customs declarations made in the UK each year when the new system is phased in – an increase of 211 million on the number of declarations made in 2017.
Appearing at a session of Westminster’s Treasury Committee, Mr Harra said: “This is largely unaffected by the outcome of negotiations with the EU about free trade agreements because whether there is or not a free trade agreement customs declarations will have to be made when we leave the customs union and therefore the costs, by and large, will apply in either scenario.”
Pressed on reports in the Financial Times earlier this year that the cost of declarations will reach £7bn a year, Mr Harra told MPs: “That is a figure I recognise.”
He added: “My department published figures towards the end of 2019 in which set out what we expected the administrative burden to be of completing additional customs declarations. I don’t think we published any further update to that.
“The figure still stands and that from recollection is about £7.5bn for the cost of the UK side of completing declarations.”
“In 2017 there were 54 million customs declarations made in the UK. At the end of the transition period we would expect that to group to 265 million. That won’t apply straight away because import controls are being staged in over six months, but that’s the rate we expect to see them from July.”
Another fine mess Boris Johnson and his buddies have got us into.
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"£7.5bn for the cost of the UK side of completing declarations.”
Ah yes, but just think of all those extra jobs this will create, reducing unemployment.
Always look on the bright side.
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Ah yes, but just think of all those extra jobs this will create, reducing unemployment.
Always look on the bright side.
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