Skip to content
Search

Latest Stories

UK Businesses Out of Time To Cope With No-Deal Brexit: Government Audit

UK businesses have run out of time to prepare for the consequences of Britain leaving the European Union in March without an exit deal, a government audit showed on Wednesday (24).

The findings by the National Audit Office, the government's spending watchdog, were published with London and Brussels at loggerheads in Brexit talks.


They threaten to deal a political blow to Prime minister Theresa May, who has made the phrase that "no deal is better than a bad deal" her mantra.

The audit said uncertainty over the course of the negotiations has delayed preparations for a no-deal scenario, with organised crime gangs potentially stepping in to smuggle goods across the new EU-UK frontier.

"Businesses do not have enough time to make the changes that will be needed if the UK leaves the EU without a 'deal'," it said.

Over the long term, "organised criminals and others are likely to be quick to exploit any perceived weaknesses or gaps in the enforcement regime," it added.

The audit estimated that between 145,000 and 250,000 traders will need to make customs declarations for the first time should Britain break away without coming to terms with the EU.

"Government papers from July 2018 stated that it was already too late to ensure that all traders were properly prepared for ‘no deal’," the report wrote.

The number of customs declarations as a whole will grow from 55 million to 260 million, putting existing government management systems under immense strain.

The audit found that 11 out of 12 government projects replacing or upgrading existing border systems to prepare for more rigorous customs checks were as of September at risk of not being delivered on time to "acceptable quality".

The Financial Times reported on Tuesday (23) that realising the potential chaos, the government was drawing up plans to charter ships to bring in food and medicine in case there was no deal.

The newspaper said a meeting of May's cabinet on Tuesday was told that a heavily used trade route between the British port of Dover and the French one in Calais would quickly become blocked if no customs arrangements were made.

Britain would then ferry in ‘critical supplies’ and possibly also car parts.

Robert Peston, the political editor of the private channel ITV, wrote on Facebook that transport minister Chris Grayling told ministers that freight coming into UK from Calais would be reduced by 85 per cent.

National Audit Office chief Amyas Morse said the government openly admits that trade between Europe's second-largest economy and the rest of the 27-nation bloc would be ‘sub-optimal’ in a no-deal scenario.

"It is not clear what sub-optimal means in practice, or how long this will last," Morse said.

The report suggested that "it may take some time" for trade to return to normal.

"Individuals and businesses will feel the impact of a sub-optimal border to varying degrees," it said.

Agence France-Presse

More For You

India’s IT sector

India’s $283 billion IT industry, which contributes more than 7 per cent to the country’s GDP, has for over three decades provided services to major clients including Apple, American Express, Cisco, Citigroup, FedEx and Home Depot.

iStock

India’s IT sector faces uncertainty as US proposes 25 per cent outsourcing tax

INDIA’s IT sector is facing uncertainty as US lawmakers consider a 25 per cent tax on companies using foreign outsourcing services.

Analysts and lawyers said the proposal has led to customers delaying or re-negotiating contracts, raising concerns in India, the world’s largest outsourcing hub.

Keep ReadingShow less
Rachel Reeves

'Our economy isn't broken, but it does feel stuck,' Reeves said, speaking alongside the release of a finance ministry report on business property taxation, known as rates.

Getty Images

Reeves signals possible changes to business property taxes ahead of budget

CHANCELLOR Rachel Reeves said on Thursday she is considering changes to business property taxes to support small firms looking to expand, as part of her plans to boost growth.

Reeves’ comments come ahead of her annual budget on November 26, at a time when concerns about possible tax rises and inflation are weighing on businesses and households.

Keep ReadingShow less
Rachel Reeves

Reeves pledged to keep a tight hold on spending to reduce inflation and borrowing costs amid concerns over Britain’s fiscal outlook.

Getty Images

Reeves urges ministers to back Bank of England on inflation

CHANCELLOR Rachel Reeves has said the government must support the Bank of England in bringing down inflation while also focusing on growth, ahead of a budget later this year that is expected to include tax rises.

Last week, Reeves said the economy was not “broken” as she announced November 26 as the date for her annual budget.

Keep ReadingShow less
Trump urges EU to impose steep tariffs on India and China over Russian oil

US president Donald Trump (R) and Indian prime minister Narendra Modi hold a joint press conference in the East Room at the White House on February 13, 2025 in Washington, DC. (Photo by Andrew Harnik/Getty Images)

Trump urges EU to impose steep tariffs on India and China over Russian oil

US PRESIDENT Donald Trump urged EU officials to hit China with tariffs of up to 100 per cent as part of a strategy to pressure Russian president Vladimir Putin, according to a US official and an EU diplomat.

Trump also encouraged the European Union to slap India with similarly expansive tariffs, said the official, who requested anonymity to discuss private conversations.

Keep ReadingShow less
Modi & Trump

Donald Trump and Narendra Modi shake hands as they attend a joint press conference at the White House on February 13, 2025.

Reuters

US, India look to reset trade talks as Trump plans call with Modi

Highlights:

  • Trump says he will speak to Modi in the coming weeks amid trade talks
  • Modi calls US and India "close friends and natural partners"
  • Trade officials from both countries may restart meetings in September
  • US-India trade reached $129 billion in 2024 with a $45.8 billion US deficit

US PRESIDENT Donald Trump said on Tuesday his administration is continuing negotiations to address trade barriers with India and that he would speak to prime minister Narendra Modi, indicating a possible reset after recent friction.

Keep ReadingShow less