Recommendations & Conclusions
3 items
3
Recommendation
Thirty-Sixth Report - EU Exit: UK Borde…
Not Addressed
More could be done by Government to ensure small and medium sized enterprises (SMEs) are prepared to face the additional costs and administration required by new border requirements. In preparing for the end of the transition period government provided a range of support to help UK businesses prepare for new …
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More could be done by Government to ensure small and medium sized enterprises (SMEs) are prepared to face the additional costs and administration required by new border requirements. In preparing for the end of the transition period government provided a range of support to help UK businesses prepare for new 6 EU Exit: UK Border post transition EU controls. This included targeted support to the 10,000 higher-value businesses which had previously only traded with the EU. Some support was provided to SMEs, including the £20 million SME Brexit Support Fund, but narrowly defined criteria meant that many businesses could not access this support and only £6.7 million was paid out. In its preparations for full import controls, HMRC is focusing more on preparing small businesses but acknowledged that it would be challenging for a small business to learn customs procedures and that most would be reliant on an intermediary. The government has also set up the Export Support Service, which brings together different departments to provide support to UK exporters, in particular smaller businesses. It is important that SMEs are not deterred from exporting because of the difficulty of complying with regulation. Recommendation: In its Treasury Minute response, Government should identify what issues businesses are facing in relation to the new border requirements and in particular determine how they can provide SMEs with additional support, both through existing mechanisms, including customs intermediaries, and new methods of targeted support. Government should write to the Committee, within six months, to provide an update on what measures have been taken to support SMEs.
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Government response AI summary
This response is from a different committee report. It states the PAC conclusion: While we wait for the much-delayed SEND review, the support system continues to fail many children and remains financially unsustainable.
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HM Treasury
1
Conclusion
Thirty-Sixth Report - EU Exit: UK Borde…
Not Addressed
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office, the Department for Environment, Food and Rural Affairs (Defra), the Department for Transport (DfT), and HM Revenue & Customs (HMRC).1 We also took evidence from the British Ports Association, Dr Jerzewska …
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On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office, the Department for Environment, Food and Rural Affairs (Defra), the Department for Transport (DfT), and HM Revenue & Customs (HMRC).1 We also took evidence from the British Ports Association, Dr Jerzewska of the Trade & Borders consultancy, and Logistics UK.
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Government response AI summary
The government's response relates to an entirely different recommendation regarding monitoring COVID-19 costs, and not the conclusion presented.
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HM Treasury
10
Conclusion
Thirty-Sixth Report - EU Exit: UK Borde…
In addition to the new customs requirements, some industries can find themselves subject to extra controls depending on the company’s individual supply chain and the industry they are in – some goods will find themselves much more regulated than others.23 Examples include: • Exports to the EU of live animals, …
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In addition to the new customs requirements, some industries can find themselves subject to extra controls depending on the company’s individual supply chain and the industry they are in – some goods will find themselves much more regulated than others.23 Examples include: • Exports to the EU of live animals, fresh meat and fish and plants must, since 1 January 2021, go through sanitary and phyto-sanitary (SPS) checks for diseases, pests and other contaminants.24 Traders in these goods will have to pay for any extra licenses or certificates needed, as well as any fees charged for physical inspections at border control posts managed by ports or the government.25 Businesses importing such goods from the EU to the UK have not yet been subject to these requirements, but these are scheduled to be phased in through 2022.26 17 C&AG’s Report, paras 2.2, 2.9, 2.10 18 Qq 86–87 19 Q 1 20 Qq 113, 171 21 Q 114; HMRC impact assessment for the movement of goods if the UK leaves the EU without a deal (third edition) - GOV.UK (www.gov.uk) 22 Q 114 23 Qq 1, 44 24 C&AG’s Report para 2.14 25 Qq 15, 28–30, 160 26 Q 146 12 EU Exit: UK Border post transition • Traders in manufactured or processed goods will need to prove the origin of its inputs, in order to prove that a good is made locally and therefore qualifies for the tariff and quota exemptions agreed in the Trade and Cooperation Agreement.27 Logistics UK told us that it can be very complicated for businesses to get declarations from all their suppliers confirming the origin of any materials or components and HMRC agreed that there is extra cost involved in getting ready all the necessary paperwork.28 Small and medium-sized enterprises (SMEs)
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HM Treasury