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

Tesco Clubcard Changes: Update Your App Before the Deadline

The digital Clubcard offers convenience and flexibility

Getty

Tesco Clubcard changes: Customers urged to update app before Monday deadline

Tesco has issued an urgent call for action to millions of its Clubcard users, advising them to update their Tesco Shopping & Clubcard app before Monday, 31 March 2025. The supermarket giant is rolling out an important update to improve data protection and online security, and failure to update the app by the deadline will leave customers unable to access their digital Clubcard benefits.

Update to ensure enhanced security

The upcoming changes are being implemented to enhance the security of customer data and improve overall protection. Tesco has highlighted the importance of this upgrade, as it seeks to safeguard customer information and keep their online shopping experiences secure.

Keep ReadingShow less
OpenAI Restricts ChatGPT’s Image Feature After Viral Ghibli Trend

Altman addressed the impact of the popular Ghibli-style image trend on OpenAI’s resources

Getty

OpenAI limits ChatGPT’s image generation feature amid viral Ghibli image trend

OpenAI CEO Sam Altman has announced temporary limitations on the company’s image generation feature in response to overwhelming demand driven by a viral trend. On Thursday, Altman addressed the impact of the popular Ghibli-style image trend on OpenAI’s resources, particularly its reliance on GPUs (graphics processing units). Altman revealed that the surge in demand for ChatGPT’s image generation tool has led to significant strain on the company’s infrastructure, prompting the introduction of temporary speed limits for users.

In a post on X (formerly Twitter), Altman shared the company’s response to the unexpected demand, stating, “It’s super fun seeing people love images in ChatGPT, but our GPUs are melting. We are going to temporarily introduce some rate limits while we work on making it more efficient. Hopefully won’t be long! ChatGPT free tier will get 3 generations per day soon.”

Keep ReadingShow less
UK-business-district-Getty
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)

Economic growth in 2024 slightly higher than estimated: ONS

THE UK economy grew slightly more than first estimated in 2024, according to official data released on Friday, providing a small boost for the government after it revised down its growth forecast for 2025.

The Office for National Statistics (ONS) said gross domestic product expanded by 1.1 per cent in 2024, up from an initial estimate of 0.9 per cent.

Keep ReadingShow less
Sri Lanka posts five per cent GDP growth as it ends years of economic decline

Sri Lanka's president Anura Kumara Dissanayake

Sri Lanka posts five per cent GDP growth as it ends years of economic decline

CASH-STRAPPED Sri Lanka’s economy grew by five per cent in 2024, marking the first full year of expansion since its unprecedented meltdown in 2022, official data showed last Tuesday (18).

The last quarter of 2024 saw the economy expand by 5.4 per cent, bringing the full calendar year’s GDP growth to five per cent, compared to a contraction of 2.3 per cent in 2023.

Keep ReadingShow less
Donald Trump

Speaking from the Oval Office, Trump said, 'What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the US.'

Getty Images

Trump imposes 25 per cent tariffs on foreign-built cars

US president Donald Trump has announced a 25 per cent tariff on imported cars and auto parts, escalating trade tensions with key partners.

The new duties take effect on 3 April and apply to foreign-made cars and light trucks, with additional levies on key auto parts set to follow within the month.

Keep ReadingShow less