The recent events in the UK saw UK Chancellor, Sajid Javid, announcing £2.1billion in extra funding to prepare Britain for a no-deal exit on October 31. Following the announcement, Richard Ballantyne, BPA Chief Executive, applauds the decision on the additional resources that will support the preparations.
The Chief Executive stated that
A ‘no deal’ would also send shudders, at least in the short term, through the UK economy. We therefore urge those both the new UK Government and EU leaders to continue to prioritise frictionless trade in their negotiations.
Recently, the BPA issued a new warning on the significant challenges for some ports around a ‘no deal’ Brexit and the impact upon trade, according to which
UK ports are resilient and have been involved in extensive planning for this scenario but that has always about mitigating for disruption, not avoiding it. While many UK ports will continue as usual there will undoubtedly be significant challenges for particular ports with trade with Europe.
So, Sajid Javid’s announcement comes in good terms with BPA’s vision on having an economic support after the ‘No-deal Brexit‘. Mr Ballantyne continued that ‘in the current climate it is sensible to take further steps to prepare for a ‘no deal’, albeit it with less than 100 days to go.’
The new funding should compliment the previously announced temporary mitigations which hopefully will mean that in the short term freight is not held up entering the UK and not delayed at ports. There are similar arrangements planned at some EU ports.
He continued that those facing serious challenges are the ro-ro port members, as Dover, Holyhead, Immingham and Portsmouth, as they could face post Brexit borders arrangements with potential new requirements on lorry traffic using these routes.
Moreover, except ports, freight operators, hauliers and traders may need to adapt systems and collect and process information needed for customs and frontier purposes.
Indeed we have heard conservative estimates of additional costs for the freight industry of around £12bn each year just in agency fees if customs declarations are required for UK-EU freight. These costs also exclude investments in new systems and any burdens imposed from tariffs.
