Friday, November 08, 2024
More pain for trade in post-Brexit farce
The paper says that the introduction of the Single Trade Window (STW), which is designed to reduce friction for traders moving goods in and out of Britain, had already been delayed from late October to January next year, but will now be halted until at least 2026:
The government hoped the STW would simplify border processes after Brexit by creating a single digital platform in which importers and exporters could upload all documentation linked to goods before they are transported.
Companies currently need to upload and submit documents to a number of different departments and agencies before importing and exporting goods, a system which has been criticised for duplication and for being time consuming.
However, the STW has been beset with problems, with the National Audit Office (NAO) warning in May that the launch faced “several major challenges” and the government’s timescales were “overly optimistic”.
The government said on Wednesday that the scheme would be put on pause for the remainder of this financial year, and throughout the next financial year. In a statement to parliament on Tuesday, James Murray, the exchequer secretary to the Treasury, said: “In the context of financial challenges, the government … [is] pausing delivery of the UK single trade window in 2025-26.”
He said it would now consider the role of the STW and provide an update on its future at the spending review in late spring.
The decision marks the latest government delay in implementing elements of the post-Brexit border plans since it was elected in July.
In September, the government pushed back checks on fruit and vegetables coming into the country, to allow more time to study the potential impact.
Last month, the government also announced that it would be pushing back the introduction of safety and security declaration forms on all imports by three months, that were initially meant to come into force on 31 October.
The STW rollout was also delayed until January at that point, but will now be halted until at least April 2026.
The Labour government has promised closer alignment with the EU over trade, including a veterinary agreement which could end new border checks and health certificates for imported meat and dairy goods.
The NAO cast doubt over the government aim of launching the first phase of the £349m scheme by the end of 2024, saying its development was “several months behind its timetable” and that it had “underestimated the complexity of what was required”.
It also said that a 12-month delay in launching the STW could reduce the benefits realised by £866m over 10 years.
So much for Brexit reducing red tape. It has actually increased it where it matters the most, in our trade transactions.
