in

UK faces post-Brexit border disruption at end of January, Labour says

Labour has warned Rishi Sunak’s government that the UK faces border disruption and risks to its food supply chains ahead of the scheduled introduction of post-Brexit import checks on January 31.

The government is due to start bringing in new paperwork requirements for EU businesses sending animal and plant products to the UK from the end of this month, with physical inspections beginning in April.

Officials said on Thursday that there would be no further delays to the introduction of the border checks, which have been postponed five times since the EU-UK Trade and Cooperation Agreement came into force in January 2021.

The scheduled launch date has prompted concerns across industry: food importers have warned about gaps on supermarket shelves, while Dutch flower growers have said the extra paperwork will land ahead of events including Valentine’s Day, Easter and Mother’s Day.

In a letter seen by the Financial Times, Labour frontbencher Nick Thomas-Symonds warned deputy prime minister Oliver Dowden that the January 31 start date ran the risk of queues at ports, delays to imports and increases in inflation, particularly in food prices.

“It is vital that you are clear with businesses, our EU neighbours and consumers about the progress being made for implementing these measures, as well as ensuring urgent steps are taken to minimise disruption to supply chains,” he wrote.

Thomas-Symonds, shadow minister without portfolio, emphasised that Labour was not trying to reverse Brexit and would not attempt to re-enter the EU single market or customs union.

Single-market membership allows EU member states to trade freely with each other, according to a common rule book, without internal border checks.

However, Thomas-Symonds urged Dowden to consider Labour’s policy of trying to negotiate a so-called sanitary and phytosanitary agreement with the EU on plant and animal products.

Such a deal would “significantly reduce trade barriers, [and] help reduce costs and delays for hard-pressed UK producers and consumers”, he wrote.

In his letter, Thomas-Symonds asked if the government had undertaken any assessments of the benefits of this kind of agreement.

He also asked what preparations had been made at UK ports, airports and other important logistical points to minimise delays, and what assessments had been undertaken into the inflationary impact of the controls on UK consumers. 

Industry groups have warned that EU businesses exporting to Britain may not be fully prepared for the checks or might give up exporting to the UK after they are introduced, scrambling some supply chains.

Thomas-Symonds said there was still uncertainty about whether the changes on January 31 would definitely happen given the five previous delays.

“It is vital to minimise the friction and disruption caused by the measures you are committed to introducing,” he wrote.

One government official said ministers and civil servants had worked closely with businesses to “get this right”.

The person acknowledged the potential impact on inflation but said it would be “negligible”, at an anticipated rate of less than 0.2 per cent over three years.

The government said it was committed to delivering “the most advanced border in the world”, adding: “We will use technology and data to make it simple for businesses to trade, while maintaining the flow and security of goods.

“The changes we’re bringing in will help keep the UK safe, while protecting our food supply chains and our agricultural sector from disease outbreaks that would cause significant economic harm.”


Source: Economy - ft.com

Macy’s to cut more than 2,300 jobs, about 3.5% of its workforce, and close five stores

US bank profits shrink on higher deposit costs, one-time charges