Traders face rising costs and more bureaucracy due to Brexit border controls, according to a new report from the independent public spending watchdog.
The government is estimated to have spent £4.7 billion so far, but some of that spending was not necessary, the National Audit Office (NAO) said.
Despite the United Kingdom voting to leave the European Union in 2016 – and officially leaving in 2020 – many border controls have not yet been implemented.
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“It is unclear” when controls will be fully implemented, Parliament’s spending authority said in its report on trade borders, and there is no timetable for the government to achieve its “world’s most effective border” target.
Repeated delays
This lack of certainty, as well as “repeated delays” in introducing import controls, resulted in spending on infrastructure and personnel that was “ultimately not necessary,” according to the NAO.
These delays and associated uncertainty have also affected businesses, adding additional costs and administrative burdens, the watchdog added.
Late policy announcements have reduced the ability of companies and ports to prepare for changes, the report states.
After five delays, the first phase of border barriers – which requires additional certification – came into force on January 31st of this year, with a second phase started on 30 April, when physical controls were introduced at ports.
A third phase, which requires safety and security declarations, is scheduled for October 31st. These phases are partial import controls.
Increased risks
The UK faces an “increased biosecurity risk” due to the phased implementation approach and having lost access to EU surveillance and warning systems after Brexit, the NAO said.
There is reduced awareness of “imminent dangers” such as African swine fever, he added.
The cost
Customs declaration work borne by businesses is estimated to have cost organizations a collective £7.5 billion, according to data from HM Revenue and Customs (HMRC) in 2019, which the NAO notes has not been updated , despite 39 million customs declarations being made on goods moving between Britain and the EU in 2022.
The government’s £4.7 billion figure is an estimate of post-Brexit border management and does not take into account the total and eventual cost.
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It did not specify when a full regime would come into force, but said it aims to introduce most of the remaining import controls during 2024.
The NAO said the UK’s 2025 border strategy “lacks a clear timeline” and intergovernmental delivery plan, with individual departments leading and implementing different parts.
He added that annual progress reports will not be published until 2025 “at the earliest”, despite the government saying in its 2020 border strategy that it would publish annual progress reports.
The NAO recommended that full border controls be carried out at all ports “as soon as possible”.
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