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The billion-pound trade with the European Union will face “significant disruption” on January 1, regardless of a trade deal being struck, the Whitehall spending regulator concluded.
The National Audit Office (NAO) said crucial IT systems have yet to be tested and transit areas for trucks are not ready as the government tries to prepare new border controls by the end of the Brexit transition period. . The planned checks, which had already been labeled “high risk,” have been further hampered by the coronavirus pandemic, according to a report released today.
Officials have yet to take the necessary steps to ensure there are enough customs officers, the auditors said, while civil contingency plans to maintain drug supplies and acquire additional cargo capacity outside the main crossings of the Canal de la Mancha have been difficult to enact due to Covid-19. .
Meg Hillier, chair of the public accounts committee, said the government has not given companies enough time to prepare, particularly when it comes to preparations for Northern Ireland after the end of the transition period.
“It is incredibly concerning that, with two months to go, critical computer systems have not been properly tested. The government can only hope that everything goes well that day, but that is not certain, ”he said.
The auditors highlighted concerns about the controls that will be required for goods moving to Northern Ireland from the rest of the UK.
The Northern Ireland Department of Agriculture, Environment and Rural Affairs (Daera), responsible for controls on agri-food products, had been “severely hampered” by the lack of agreement with the EU and the “lack of clarity” on the necessary measures. As a result, Daera had concluded that it would not be possible to complete the necessary work on its systems and infrastructure by January 1. He said he had to explore “contingency options.”
The auditors said the government had given itself little time to mobilize its new merchant support service, which will help companies move goods between Britain and Northern Ireland. This meant that there was a “high risk” that traders would not yet be prepared when the new agreements came into force.
According to the latest “reasonable worst case planning assumptions” from the government, between 40% and 70% of trucks traveling between the EU and the UK may not yet be ready for the new border controls. Ministers have already warned carriers that they could face queues of up to 7,000 trucks at major Canal crossings.
The NAO said that while agreements were being developed to minimize delays, they were dependent on new technology and would require the participation of merchants and carriers. There is little time left for ports to integrate their systems and processes with new government systems, and they may have to resort to “manual processes,” he said.
The government has identified seven inland transit sites for trucks and HM Revenue & Customs (HMRC) has said that preparing all of them for January 1 was “very difficult”.
Ministers have delayed imposing full import controls on goods from the EU until July 2021. Auditors said there was still uncertainty about where the infrastructure would be located and if it would be ready in time.
HMRC still needs to make significant changes to its customs systems to handle the surge in customs declarations, according to the report, although it knew this was likely necessary since planning for a no-deal Brexit began in 2017.
Gareth Davies, the head of the NAO, said: “The January 1 deadline is different than any previous EU exit deadline: there will be significant changes to the border and the government must be ready.
“Disruptions are likely to occur and the government will need to respond quickly to minimize the impact, a situation made even more challenging by the Covid-19 pandemic.”
A UK government spokesperson said: “We are making significant preparations to prepare for the changes guaranteed at the end of the transition period, including the investment of £ 705 million to ensure that the right border infrastructure, staff and technology are in place. , providing £ 84 million in grants to boost the customs broker sector and implement border controls in stages so that traders have plenty of time to prepare.
“With less than two months to go, it is vital that businesses and citizens also prepare. That is why we are intensifying our commitment to companies and carrying out a major public information campaign. “
