Feb 17 • 08:30 UTC 🇬🇧 UK Guardian

UK shelves £110m frictionless post-Brexit trade border project

The UK government has canceled a £110 million project aimed at simplifying post-Brexit trade processes due to rising costs and lack of progress.

The UK government has decided to shelve a significant project intended to streamline border processes following Brexit, after incurring costs of £110 million with Deloitte and IBM. This initiative was initially proposed by the last Conservative government in 2020, which aimed to establish 'the world’s most effective border' by 2025. The plan was ambitious, featuring a proposed 'single trade window' that would serve as a digital hub for importers and exporters to manage their documentation efficiently before goods were transported.

Despite the initial enthusiasm, the timeline for the project faced multiple delays, and it was ultimately paused in 2024 over concerns about its implementation costs. The latest reports indicate that no funds have been allocated to the project since January of the previous year, with the Treasury officially announcing that the program has been 'brought to an early closure.' This decision highlights the ongoing challenges the UK government faces in adapting to new trade realities after leaving the EU.

The shelving of this project signals a setback for the government's post-Brexit trade strategy, raising questions about the future of trade facilitation between the UK and EU. As businesses continue to navigate new border complexities, the cancellation of the 'single trade window' project underscores the difficulties in achieving efficient trade operations in the new normal, potentially impacting trade relationships and economic recovery efforts in the UK.

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