A new report from the independent public spending watchdog has found that traders are facing increased costs and paperwork as a result of Brexit border controls. According to the National Audit Office (NAO), the government has spent an estimated £4.7bn so far on Brexit-related border management, but some of this spending was deemed unnecessary.
Despite the UK voting to leave the European Union in 2016 and officially exiting in 2020, many border control checks are yet to be fully implemented. The NAO has stated that it is unclear when these checks will be fully in place and that there is currently no timetable for the government to achieve its goal of having the “world’s most effective border”.
The lack of certainty and repeated delays in implementing import controls have resulted in the government spending on infrastructure and staff that was ultimately not needed, the NAO reported. These delays have also added extra costs and administrative burdens for businesses.
The report also highlighted that late policy announcements have hindered the ability of businesses and ports to prepare for these changes. After five delays, the first phase of border barriers – requiring additional certification – came into force on 31 January this year, with a second phase introducing physical checks on 30 April. The third phase, which will require safety and security declarations, is scheduled for 31 October.
However, the NAO has raised concerns about the phased implementation approach, stating that it puts the UK at an “increased biosecurity risk”. The country has lost access to EU surveillance and alert systems after Brexit, reducing its awareness of potential threats such as African Swine Fever.
The report also noted that the cost of customs declarations for businesses, estimated at £7.5bn by HM Revenue and Customs (HMRC) in 2019, has not been updated despite 39 million customs declarations being made on goods between the UK and the EU in 2022.
While the government has estimated the current cost of post-Brexit border management at £4.7bn, this figure does not account for the full and eventual cost. The NAO has stated that the government’s 2025 UK border strategy “lacks a clear timetable” and implementation plan, with individual departments leading and implementing different parts.
The NAO has recommended that full border controls be implemented at all ports “as soon as possible” and has raised concerns about the lack of transparency and progress reporting in the government’s strategy. The government has stated that it intends to introduce most of the remaining import controls by 2024, but annual progress reports will not be published until 2025, contrary to what was stated in the government’s border strategy in 2020.
