Inflation Concerns Cause Another Delay in Post-Brexit UK Border Food Checks

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UK ministers are preparing to announce a further postponement of post-Brexit border controls on EU imports of animal and plant products. This decision, prompted by concerns over increasing bureaucracy and inflation, aims to give businesses and port operators extra time to implement the necessary arrangements.

The announcement comes ahead of the Bank of England’s upcoming monetary policy committee meeting, where the persistent high inflation will be discussed.

This planned border control regime for goods entering the UK from the EU has faced multiple delays. However, the delay in implementing the new import regime for EU imports into the UK is motivated by the need to address inflation and the additional costs that would be incurred at the border.

While a new timetable has not been finalized, it is expected that the start of the new regime will be pushed into next year.

Government officials emphasize that this delay is necessary to ensure businesses have enough time to adapt to the new rules. One official stated, “The effort made by businesses will not go to waste. There will be a delay, but the new regime will be implemented.”

Ministers are currently considering feedback from stakeholders to ensure sufficient preparation time. A government spokesperson confirmed that the Border Target Operating Model will be published soon.

The previous schedule included health certification for “medium-risk” imports starting in October, physical checks beginning in January 2024, and safety and security declarations for EU imports introduced from October 2024. The spokesperson stated that the simplified system, compared to last year’s proposal, will be introduced progressively.

Chancellor Jeremy Hunt and Prime Minister Rishi Sunak have prioritized tackling inflation and have been open to deviating from Brexit principles, such as “taking control” of borders and diverging from EU rules, to reduce business costs.

On Tuesday, the government scrapped plans for a UK equivalent of the EU’s “CE” product-quality mark due to concerns raised by businesses about excessive bureaucratic requirements.

Sunak expressed his desire for inflation to decrease more rapidly, but assured the public that when inflation returns to lower levels, it will have a transformative impact. Notably, food prices have risen significantly.

In an industry briefing document released last April, the government firmly stated its intention to proceed with the first phase of border controls in October 2022, after four previous delays. The original start date was supposed to be July 2021.

Last June, the food industry warned that charging a flat-rate inspection fee of up to £43 per food consignment from the EU would lead to higher food prices. The government estimated additional costs of EU controls at £420 million annually.

The proposed controls, originally scheduled for October 31, would have required EU exporters of food products to obtain costly “export health certificates” and physical sign-off by a veterinary surgeon.

Industry experts support the decision to delay the October requirements due to inflationary pressures and limited awareness of incoming controls in the EU. A survey conducted last July found that 40% of EU-based clients and suppliers were unaware of the requirements.

The British Chambers of Commerce also consider delaying the October controls a sensible move given current inflation rates. However, they caution that introducing new paperwork and physical checks simultaneously next year will require adequate port infrastructure.

Nick von Westenholz, director of trade at the National Farmers Union, acknowledges the need to protect consumers from price increases. Nevertheless, he emphasizes the importance of a clear and concrete timetable for the new import regime to ensure a level playing field for UK growers and producers.