Government accused of ‘trolling’ British businesses with ‘Benefits of Brexit’ report

Industry leaders fail to see the ‘streamlined and simplified’ customs paperwork hailed by UK government

(Gareth Fuller/PA) (PA Wire)

Business leaders have accused the government of "trolling" them with a 108-page document laying out benefits of Brexit while many firms face long delays, higher costs and more paperwork.

Publication of the "Benefits of Brexit" document on Monday was overshadowed by Sue Gray's report into lockdown-breaking Downing Street parties.

Ministers have promised the UK will be freed from £1bn of Brussels red tape, but the claim has attracted widespread derision among firms.

Perhaps most contentiously, the government claims that Brexit has "streamlined and simplified nearly 6,000 tariff lines, lowering costs for businesses by reducing administrative burdens".

Importers, exporters and logistics companies have experienced long delays and rising costs as a result of extra administrative work that was not necessary when the UK was within the EU single market and customs union.

Shane Brennan, chief executive of the Cold Chain Federation, said it was "very hard to take the document seriously".

He added:"It's just backward-looking self-justification.

"Stuff like saying they will at some undefined point in the future ‘digitise export health certificates’ as a Brexit divided is just trolling.

"The only reason we need the process and the expensive vet costs…etc is because of Brexit. Also they fail to admit that none of that will help UK based exporters to the EU because they are beholden to the rules that will be imposed on them by the market they are looking to export to.

Mr Brennan said long queues at Dover this year were likely due to the port a not enough staff and underinvestment in the technology needed to manage the flow of vehicles now that new processes are required.

“Benefits of Brexit” does little to address these practical issues. Instead, it lays out broader aspects of the government’s post-Brexit strategy such as scrapping and rewriting swathes of retained EU law, and reshaping the role of regulators to ensure they “collaborate” with those they regulate.

It has also attracted criticism for trumpeting purported freedoms such as bringing back imperial measurements and allowing businesses to use the crown stamp symbol on pint glasses. The government’s freeport plan is also promoted as benefit, but the document fails to mention the fact that EU law does not prevent member states from creating freeports.

Similarly, it hails the reintroduction of “iconic blue passports” which have replaced the burgundy-covered ones issued between 1988 and 2020. The UK could have chosen its own colour for passports while a member of the EU, as Croatia has done with its.

Labour peer Lord Adonis, a staunch supporter of the UK's EU membership, was scathing of the "Benefits of Brexit" document, tweeting: "In yesterday’s melée you may have missed HMG white paper on “the benefits of Brexit” which is the most insubstantial, feeble, dissembling pyramid of piffle, claiming eg that 70 trade deals are new when all but 1 is a roll-over from EU."

James Withers, chief executive of Scotland Food & Drink, summed things up: "My conclusion: if I’d written this, I’d also want to issue it on a day I knew it would get buried."

Some business leaders warned that, in contrast to the government’s central claim, further divergence from EU rules would continue to create more red tape, not less.

"Queues at the UK border demonstrate the impact even small changes in regulation can have and although it isn’t as visible, changes to tax regulations like VAT are having a big impact," said Andy Spencer, a director at tax consultancy firm Sovos.

"As both the EU and UK move in different directions it is likely more ‘red tape’ will be created than removed."

Not everyone expressed a negative view. City lobby group UK Finance welcomed the new opportunity to “tailor” the financial services industry’s rulebook.

A spokesperson said: “The UK government has set out ambitious plans which we welcomed and would now like to see speedily enacted to support a strong banking and finance sector that delivers jobs and investment and drives growth.”