The UK Government has delayed introducing more checks on EU goods entering the country for the fourth time.
The new import controls on EU food products were due to begin in July, but were delayed due to fears over disruption to the supply chain and increasing inflation.
Brexit Opportunities Minister Jacob Rees-Mogg said the government was reviewing plans on how it would implement checks on EU goods, claiming the new “controls regime will come into force at the end of 2023”.
He claimed the delay would save up to £1bn for British businesses in its annual costs, warning it would be an “act of self-harm” to impose new administrative checks and risk disruption at ports, during a period with higher energy prices and higher costs due to the war in Ukraine.
In an interview with ITV, Rees-Mogg stated that the checks would have brought “quite significant” price increases for people at a time when the government was “trying to reduce costs”.
He explained it would include a 71% increase - at the maximum level - on the retail price of small deliveries, using cheese as an example.
"You would have been adding potentially £500 of costs on a shipment of fish fingers, that then falls through to the consumer," he added.
Federation of Small Businesses national chair Martin McTague said: “Imposition of full import controls this summer would have meant yet another burden for small firms which are already wrestling with new trade rules and spiralling operating costs.
“This move will give them more time to prepare for future changes and reassess supply chains.”
However, the British Ports Association criticised the decision following millions of pounds being invested to prepare for the upcoming border checks in July.
It would have let them check imports of EU food and animals and argued that the checks have not only been delayed, but could be rendered “useless” if a “light touch” regime is implemented instead.
Chief executive at the British Ports Association, Richard Ballantyne, said: "This is quite an amazing development to say the least.
"Many UK port operators have built Border Control Posts in preparation for post Brexit checks and all were due to be ready.
"This announcement is a major policy change, meaning the facilities will effectively become white elephants, wasting millions of pounds of public and private funding, not to mention the huge effort there has been to get things ready in time.”
Ewan MacDonald-Russell, head of policy at the Scottish Retail Consortium, said: “Retailers have been working with their European suppliers for many months to help prepare them for the incoming border checks in July - the staggered introduction of checks proposed was workable, provided UK ports were ready, and exporting suppliers received the support needed to complete the required checks.
“Our members welcome the delay, given the added costs to the supply chain and the level of friction anticipated.
“However, the postponement of border checks will only prolong the inevitable - we hope that when these checks are introduced, they will move away from the current proposals to ones that are simplified and recognise controls in the supply chain to reduce cost and bureaucracy.”
NFU Scotland president Martin Kennedy said: “The prolonged failure of the UK Government to place UK food exporters on an even keel with those exporting goods to the UK from Europe shows an astonishing level of incompetence and failure to support Scottish producers and our food and drink sector.
“They are now proposing to kick the can down the road for a further 18 months with the intention of introducing a ‘digital solution’ that hasn’t even been created let alone trialled.
“The UK Government is making it easy for imports to the valuable UK market while Scottish food exporters continue to face extensive paperwork and long queues to get their goods to the EU - it is utter madness - we are working with hands tied behind our backs while our Government make it easy for our competitors.”
Kennedy added: “It is estimated that, for those looking to export Scottish beef, lamb or pork to Europe, Brexit and new cross-border checks have added an additional six percent to our costs – a cost that those looking to export similar goods here from Europe do not have to face due to Government failing to introduce similar controls.
“These checks are absolutely crucial to our biosecurity, animal health and food safety and without them we are leaving ourselves at risk.”
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