While the last few months felt like not much had come out at all from Government, the last couple of weeks have seen a flurry of updates on Brexit, some formal and some via the media.
Wednesday 8 July we heard via Business Insider of a leaked letter from Liz Truss, International Trade Secretary, to Rishi Sunak and Michael Gove on her concerns for how the proposed border plans leave the UK exposed to legal, security and political risks. She outlined four concerns involving the staged approach and World Trade Organisation (WTO) challenge, controls at the border, tariff assessment and collection, and Northern Ireland Protocol risks.
Friday 10 saw details outlined in the media about the Government’s plan to launch a “Get Ready for Brexit” campaign. This is the second attempt at releasing such a campaign after the first roll-out was pulled three days before we were due to leave the EU on 31 October 2019, due to agreeing an extension to the transition period with the EU. The article points out that businesses need to prepare for customs declarations, a requirement that was abolished in 1993 with the introduction of the single market.
Following the news reports, the Government has since shared details via the document The Border with the European Union – Importing and Exporting Goods. While this runs to more than 200 pages, and the Government insists it gives businesses the clarity needed to plan, it does stipulate that “some specific processes are subject to ongoing public consultations and have not been included”. This document advises businesses to get a customs intermediary and links to the Government page outlining their role and how to find one. It also references the support package outlined to bolster the customs intermediary sector.
Sunday 12 July saw an article published by Government on investing £705 million in new infrastructure to prepare the UK for the end of the Transition Period. This also shares how they’ll be delivering a public information campaign, “The UK’s new start: let’s get going”, aimed at everyone from the “managing director of a multinational conglomerate or a family business; a UK citizen resident in the EU or planning to work abroad”. A video outlining the campaign has also been shared.
Monday 13 July we heard of a study by the Institute of Directors showing that three out of four firms, particularly in manufacturing, aren’t prepared for the end of the Transition Period due to a lack of clarity and half are unable to prepare because of this. This is concerning, particularly for Dorset with a large number of manufacturing firms. 69% of the directors surveyed stressed the importance of securing a deal with the EU as opposed to exiting on WTO terms. Considering that talks between the UK and EU have been strained, with limited progress due to both sides being unwilling to compromise, again this is concerning for our local, and national, companies.
The National Audit Office shared on 15 July how the Department for International Trade (DIT) and UK Export Finance (UKEF) had “made a good start in developing a strategy and operating arrangements to better support UK businesses in trading overseas” but faced long term challenges. Part of the UK Government’s strategy to increase productivity and growth following our exit from the EU is to grow exports, but the report questioned the viability of initial targets. Current constraints with data sharing was noted as one challenge but one which could be overcome by the forthcoming Trade Bill to allow data to be shared between the DIT and HM Revenue & Customs.
A four-week consultation opened on 16 July to gather insight from the four nations of the UK on options to enshrine in law two principles (mutual recognition and non-discrimination) outlined in the UK internal market white paper. Views are sought from businesses, academics, consumer groups and trade unions, but the consultation is open to anyone who has an interest and can be responded to here. This is feeding into the government’s consultation on measures to protect internal trade by preventing new burdens on cross-UK business when powers return from the EU.
The Joint Ministerial Committee (EU Negotiations) met via video conference 16 July and discussed negotiations with the EU, the Intergovernmental Relations Review, the Northern Ireland Protocol, preparedness for the end of the transition period, the launch of a communications campaign for readiness, legislation, and the UK Internal Market.
On 17 July the Institute for Government published the paper ‘Preparing Brexit – the scale of the task left for UK businesses and government’. This concludes that coronavirus has made it even more difficult for businesses to prepare, uncertainty about our future relationship with the EU also hinders preparations, preparation will not avoid disruption and Brexit does not end on 1 January 2021. This also outlines several pointers for what the government should do to support businesses, including targeting information and support to the least prepared businesses, namely small and medium sized businesses (SMEs) that lack professional support and are least prepared. This is a consideration for us in Dorset with a large number of SMEs.
Now we have a bit more clarity from Government on the plans being rolled-out, we need to keep close to how our local businesses react to this and if it’s enough for them to prepare with. As businesses must be fully proficient in the new customs requirements by 1 January 2021 it’s essential we help them to understand this. At Dorset Chamber we can facilitate their upcoming requirements either by providing the customs intermediary service or by arranging training to enable businesses to do this themselves.
Dorset Chamber delivers a free of charge Brexit advice service to all businesses, funded by BCP Council and Dorset Council. For information and advice please contact us at gateway@dcci.co.uk / 01202 714800 or visit http://www.dorsetchamber.co.uk