With just weeks to go until the UK leaves the EU single market and customs union, regardless of whether a new EU/UK deal is reached, a report from the Institute for Government warns that:
the Northern Ireland Protocol will not be ready to implement on 1 January 2021;
disruption at the EU-GB border is inevitable due to poor trader readiness and EU checks; and
the COVID-19 crisis means many UK firms are less prepared than they were last year.
The institute considers that ‘the prime minister’s refusal to seek more time to negotiate was always a high-risk bet. A continued lack of clarity over the Brexit talks makes this bet riskier with every passing week, with the rise in coronavirus cases demanding ever greater government and public attention.’
It recommends:
The EU should acknowledge that fully implementing the Northern Ireland Protocol by January will be almost impossible and be ready to show some flexibility.
The government must prove that it will not renege on its international obligations. The powers taken in the UK Internal Market Bill have undermined trust. The first step should be removing the offending clauses.
The government should consider light-touch enforcement or further delays to new import controls to minimise disruption at the border.
The government should clearly communicate the practical impact of leaving the single market and customs union – in particular, the greater level of bureaucracy traders will face from the end of the year, deal or no deal.
The government should work closely with business groups to identify where targeted economic support for firms affected by Brexit may complement its coronavirus economic response.
With just weeks until the end of the transition period, the government still has a lot to do to get Brexit done. The report concludes: ‘Despite Brexit dominating the political landscape for so long, the UK is still not ready for life outside the EU. The government made a choice when it decided not to seek an extension to the transition period so set itself and the country a difficult task in preparing to leave the EU while battling a global pandemic. In the weeks ahead, the government needs to prove that it made the right call.’
With just weeks to go until the UK leaves the EU single market and customs union, regardless of whether a new EU/UK deal is reached, a report from the Institute for Government warns that:
the Northern Ireland Protocol will not be ready to implement on 1 January 2021;
disruption at the EU-GB border is inevitable due to poor trader readiness and EU checks; and
the COVID-19 crisis means many UK firms are less prepared than they were last year.
The institute considers that ‘the prime minister’s refusal to seek more time to negotiate was always a high-risk bet. A continued lack of clarity over the Brexit talks makes this bet riskier with every passing week, with the rise in coronavirus cases demanding ever greater government and public attention.’
It recommends:
The EU should acknowledge that fully implementing the Northern Ireland Protocol by January will be almost impossible and be ready to show some flexibility.
The government must prove that it will not renege on its international obligations. The powers taken in the UK Internal Market Bill have undermined trust. The first step should be removing the offending clauses.
The government should consider light-touch enforcement or further delays to new import controls to minimise disruption at the border.
The government should clearly communicate the practical impact of leaving the single market and customs union – in particular, the greater level of bureaucracy traders will face from the end of the year, deal or no deal.
The government should work closely with business groups to identify where targeted economic support for firms affected by Brexit may complement its coronavirus economic response.
With just weeks until the end of the transition period, the government still has a lot to do to get Brexit done. The report concludes: ‘Despite Brexit dominating the political landscape for so long, the UK is still not ready for life outside the EU. The government made a choice when it decided not to seek an extension to the transition period so set itself and the country a difficult task in preparing to leave the EU while battling a global pandemic. In the weeks ahead, the government needs to prove that it made the right call.’
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