Post-Brexit trade scheme to cost more than £500m

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The government’s main post-Brexit scheme for helping traders move goods from GB to NI will have cost more than £500m in its first four years.

The detail is contained in a report from the National Audit Office (NAO) which looks at the delivery of the UK’s trade border.

It says HMRC expects to have spent £531m on the Trader Support Service (TSS) between December 2020 and December 2024.

The TSS was set up to help businesses deal with new customs processes.

It is being operated by a consortium led by the IT firm Fujitsu.

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The contract was initially for a two-year period, with the option of two one-year extensions. HMRC has since extended the contract twice and the current contract will expire in December 2024.

The system was required as a consequence of the Northern Ireland part of the Brexit deal, known as the NI Protocol and then the Windsor Framework.

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From January 2021 commercial goods entering NI from GB have needed customs declarations.

The TSS effectively acts as government-backed customs agent on behalf of businesses.

The government intends to continue simplifying the customs processes through a combination of technology and improved administration.

The NAO said that following the publication of the Windsor Framework in February 2023, the government committed to providing long-term support for traders moving goods from GB and NI.

“HMRC is considering options for the future of the TSS to ensure there is continuity of support for traders beyond the current contract period,” the report added.

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