LONDON — The U.K. is set to once again delay the implementation of post-Brexit border checks for EU imports amid concerns the new regime will further stoke inflation.
Britain was planning to roll out the first stage of the new border model from October, with further stages implemented throughout 2024 that would see more checks on food and animal products entering the country.
The Financial Times first reported the fresh delay, the fifth time these post-Brexit border checks have been put off, due to the potential inflationary effect of the new red tape.
A senior government official refused to deny the story on Thursday morning on three occasions, but downplayed the effect that inflationary pressures have had on the decision-making process.
The official told POLITICO that “we’ve been reflecting on the feedback we’ve had from stakeholders” and that “we’re conscious that businesses need time to prepare for checks to be introduced.”
A second official, working for the Foreign Office, said the story was accurate.
A business figure with knowledge of the Cabinet Office decision-making process also said they had been told to expect a delay.
POLITICO reported in April that there were widespread fears in the business community that the government’s newly unveiled border plans would increase costs for importers and fuel Britain’s runaway food inflation.
The U.K.’s annual inflation rate came out at 7.9 percent in June, the highest in the G7, while food inflation was 17.3 percent.
Government officials told businesses in April that firms will be hit with £400 million in extra costs due to the new border regime, which business groups say would likely reduce the number of EU firms exporting to the U.K.
It has been widely speculated that the coming delay is due to Rishi Sunak’s stated target of getting inflation down to around 5 percent by the end of this year — something which could be further imperiled by the new red tape.
A representative from a major business group said that “preparation on the government side has been lacking” and that today’s news will cause serious frustration to firms that have already been preparing for the planned border checks.
“Businesses have incurred quite a lot of costs getting ready for this and what we really wanted was clarity, not a delay,” they said.
“The irony is that for every delay, they’ve added costs to businesses that they can’t reclaim.”
A government spokesperson said: “The government remains committed to delivering the best border in the world. The Border Target Operating Model is key to delivering this and introduces an innovative approach to importing that will be introduced progressively.
“We are reflecting on the valuable feedback provided by a range of businesses and industry stakeholders and will publish the Border Target Operating Model shortly.”
Esther Webber contributed reporting.