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There are just 16 days to go until the end of the transition period
But how ready is the UK? (Tl,dr – it’s not and realistically can't be fully prepared)
(Long) thread, building on our @instituteforgov paper from November (most of which still stands…) https://www.instituteforgovernment.org.uk/publications/preparing-brexit-how-ready-uk
But how ready is the UK? (Tl,dr – it’s not and realistically can't be fully prepared)
(Long) thread, building on our @instituteforgov paper from November (most of which still stands…) https://www.instituteforgovernment.org.uk/publications/preparing-brexit-how-ready-uk
First. What does being ready look like?
Deal or no deal – huge changes are coming in Jan. With new customs and regulatory checks at the border, new red tape and rules for businesses, the end of free movement of people +less effective security cooperation https://www.instituteforgovernment.org.uk/publication/future-relationship-brexit-deal
Deal or no deal – huge changes are coming in Jan. With new customs and regulatory checks at the border, new red tape and rules for businesses, the end of free movement of people +less effective security cooperation https://www.instituteforgovernment.org.uk/publication/future-relationship-brexit-deal
In practice, the scale of these changes – and the limited time to prepare alongside covid- mean that the UK will never be fully ‘ready’. Inevitably there will be some disruption at the border, non-compliance with new rules and interrupted trade. Cannot foresee all eventualities.
What are the main stumbling blocks in preparations?
The GB-EU border
Business readiness
NI protocol - last week's agreement has resolved some issues – but there is still a lot to do
The GB-EU border Business readiness NI protocol - last week's agreement has resolved some issues – but there is still a lot to do
GB-EU border
The gov is just about on track to deliver IT systems infrastructure and people needed to make the GB-EU border work from Jan.
But a lot of this has come late in the day-leaving little time for full end-to-end testing and for businesses to make their own preparations
The gov is just about on track to deliver IT systems infrastructure and people needed to make the GB-EU border work from Jan.
But a lot of this has come late in the day-leaving little time for full end-to-end testing and for businesses to make their own preparations
Much also rests on the private sector being ready. Most traders will rely on customs agents to complete paperwork on their behalf, and private sector vets to sign export health certificates. But capacity has been slow to rise to meet demand.
And all of this is after the UK government delayed introducing full import checks for 6 months.
Much more work is needed before these take effect in July.
Much more work is needed before these take effect in July.
Some government preparations have also been thrown off course. Flooding has delayed construction of one of the key ‘lorry parks’ in Kent, needed help manage new border processes – forcing the gov to rely on contingency plans https://www.kentonline.co.uk/ashford/news/brexit-lorry-park-wont-be-complete-until-february-239212/
In contrast, EU member states are far more confident in their border infrastructure and processes – having been ready longer and subject to more testing. But risks remain on day one. https://theloadstar.com/european-ports-and-eurotunnel-were-ready-for-brexit-is-the-supply-chain/
It seems inevitable that there will be disruption at the border in Jan (even if it doesn’t all hit on 1 Jan).
A lot of the gov’s prep is about handling this – through lorry parks, contraflow systems and a new app to try and keep unprepared lorries away from the border.
A lot of the gov’s prep is about handling this – through lorry parks, contraflow systems and a new app to try and keep unprepared lorries away from the border.
Businesses have been preparing for the risk of delays too, by stockpiling and seeking alternative routes. But there are concerns that EU hauliers (~85% of the haulage market) could choose to avoid GB if there are delays – which could exacerbate problems.
Business readiness remains the biggest concern for January.
A punishing mix of covid, uncertainty over the outcome of negotiations and a lack of detailed guidance has hindered preparations and means many firms will not be ready for new rules.
A punishing mix of covid, uncertainty over the outcome of negotiations and a lack of detailed guidance has hindered preparations and means many firms will not be ready for new rules.
But biz readiness is not uniform. High regulated services tends to be better prepared. Small biz tend to be less prepared. But readiness can vary between firms.
Nearly 2/3 of @The_IoD members say they are not fully prepared + @EY_UKI say 80% global biz not aware of all risks
Nearly 2/3 of @The_IoD members say they are not fully prepared + @EY_UKI say 80% global biz not aware of all risks
Many are calling for a generous approach to enforcement on day one. Businesses do not want to break the rules–but may struggle to prepare and may find themselves acting unlawfully in Jan...
As @SamuelMarcLowe explores https://www.cer.eu/publications/archive/bulletin-article/2020/navigating-accidental-illegality
As @SamuelMarcLowe explores https://www.cer.eu/publications/archive/bulletin-article/2020/navigating-accidental-illegality
Delays in reaching a Brexit agreement mean that time may now have run out for businesses to enjoy all the benefits on 1 Jan, even if one is agreed.
For example, to benefit from zero tariffs, firms would have to comply with complex rules of origin requirements showing where their goods come from. But firms now say they won’t have time to do this without a grace period. https://twitter.com/AnnaJerzewska/status/1338106674700283904
Plus many regulatory changes don’t bite on 1 Jan. The UK government is phasing in many new rules and registration requirements over time. So businesses will have to keep preparing for Brexit changes well into 2021 and beyond. https://twitter.com/Joe_Marshall0/status/1333366196654239744
Take a look at our @instituteforgov (and @sageuk) event from last week on business readiness for more detail on how businesses are preparing https://www.instituteforgovernment.org.uk/events/three-weeks-go-business-ready-brexit
NI protocol
Last week’s agreement on NI resolves many of the issues that risked most disruption at the GB-NI border on 1 Jan. But more detail is needed to understand how the various mitigations will work in practice.
See @Jess_Sargeant's piece for more https://twitter.com/Jess_Sargeant/status/1336982864706068482
Last week’s agreement on NI resolves many of the issues that risked most disruption at the GB-NI border on 1 Jan. But more detail is needed to understand how the various mitigations will work in practice.
See @Jess_Sargeant's piece for more https://twitter.com/Jess_Sargeant/status/1336982864706068482
Many of these rely on the gov setting up new services or schemes for businesses- the trader support service for customs, movement support service for EHCs and the trusted trader scheme to avoid tariffs and rules of origin. With just days to go – the pressure is on gov IT teams
Many measures are also temporary – meaning firms, gov and NI executive must continue preparing for big changes next year.
And the gov seems to accept that January could still be bumpy – calling for pragmatism and sympathy next year…
And the gov seems to accept that January could still be bumpy – calling for pragmatism and sympathy next year…
Dealing with huge Brexit changes plus Covid and winter pressures will be a huge task for gov. It’s good to see ‘Operation Capstone’ contingency plans being tested this week. But as @FT reports, some parts of gov are stretched. Civil servants are fatigued https://www.instituteforgovernment.org.uk/events/when-brexit-and-covid-collide
The gov still needs to outline what Brexit economic support – if any - it will provide to biz. Reports suggest £8-10 billion to support hard hit sectors in a no deal. https://www.telegraph.co.uk/news/2020/12/12/billions-no-deal-brexit-help-farmers-factories/
But even with a deal, some could struggle with short term disruption to supply chains or adapt to new rules...
And targeting economic support will be incredibly difficult, given the ongoing impact of the Covid crisis complicating the task...
And targeting economic support will be incredibly difficult, given the ongoing impact of the Covid crisis complicating the task...
Ultimately, the UK is not ready for Brexit. To some extent, it can never be fully prepared. But more can be done in the weeks ahead.
But short timelines, Covid and deal uncertainty have not helped matters.
But short timelines, Covid and deal uncertainty have not helped matters.
