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

nintendo switch 2

The new console aims to build upon the success of its predecessor while introducing fresh innovations

Getty

Nintendo unveils Switch 2 - A new era for hybrid gaming begins

After months of speculation and cryptic teaser campaigns, Nintendo has officially announced the highly anticipated successor to its bestselling hybrid console. The Nintendo Switch 2 is set to launch on 5 June, with a price tag of £395.99 for the base package and £429.99 for a bundle including Mario Kart World. With a range of hardware improvements, redesigned controllers, and an exciting lineup of games, the new console aims to build upon the success of its predecessor while introducing fresh innovations.

A Bigger, Sharper Display and 4K Support

One of the most noticeable upgrades in the Nintendo Switch 2 is its display. The console now features a larger 7.9-inch screen, boasting twice the pixel count of the original Switch and supporting full 1080p resolution. Additionally, the display is capable of up to 120 frames per second, ensuring smoother animations, while high dynamic range (HDR) enhances colour contrast for a richer visual experience. Despite these improvements, the Switch 2 maintains the same thickness as the original model, preserving its signature portable form factor.

Keep ReadingShow less
‘All options on the table’ as Britain
prepares for likelihood of US tariffs

Sir Keir Starmer with Jonathan Reynolds

‘All options on the table’ as Britain prepares for likelihood of US tariffs

BRITAIN is likely to be hit by US tariffs despite making “rapid progress” over a trade deal with Washington, prime minister Sir Keir Starmer said on Tuesday (1).

He spoke as US trading partners around the world braced for an expected fresh raft of tariffs from president Donald Trump, in addition to levies already imposed on steel and those set to take effect this week on cars.

Keep ReadingShow less
single-use vapes-iStock

Analysis by Material Focus estimates that 8.2 million vapes are discarded or littered each week in the UK—equivalent to 13 every second. (Representational image: iStock)

iStock

Shops told to clear single-use vapes before ban starts on June 1

SHOPS across the UK have until 1 June 2025 to sell off remaining stocks of single-use vapes before a nationwide ban comes into force.

The legislation, confirmed last year, follows a government consultation that showed strong support for restricting their sale and supply.

Keep ReadingShow less
Primark-London-Getty

During his 15-year tenure, Marchant expanded Primark’s store network to more than 450 locations across 17 countries in Europe and the United States. (Photo: Reuters)

Primark chief Paul Marchant steps down after misconduct probe

PAUL MARCHANT, the head of fashion retailer Primark, has resigned with immediate effect after admitting to an "error of judgment" in his behaviour towards a woman in a social setting.

Associated British Foods (AB Foods), Primark's parent company, announced his resignation on Monday.

Keep ReadingShow less
Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

JAGUAR’S ambition to seduce younger, richer drivers was on full display in Paris with a presentation of its newest prototype, the Type 00, which promises all-electric luxury... at a steep price.

The low-slung, muscular-looking concept car presented to European reporters last Friday (21) prefigures a production model expected mid-2026 at a base cost of €150,000 (£123,472.8).

Keep ReadingShow less