Labour’s Brexit plan risks leaving UK taxpayers stuck with multi-MILLION-pound bill
Port operators who have spent roughly £100million on food inspection facilities at the UK border have threatened to come chasing taxpayer-funded compensation if Labour wins the General Election and strikes a check-free deal with the EU.
Customs facilities had been erected at ports around the UK in order to deal with post-Brexit goods checking requirements on food and plant imports – but these could be rendered obsolete overnight if Labour leader Sir Keir Starmer follows through on one of his election promises.
Starmer, if elected, would seek an agreement with the EU on veterinary – or sanitary and phytosanitary (SPS) imports, which may prompt port operators to pursue guarantees the money they’d invested on the facilities is returned.
Richard Ballantyne, chief executive of the British Ports Association (BPA), said: “If we were to go back a few years, this [a free trade SPS goods deal] is something we would have encouraged the current UK government to have negotiated previously under the Brexit agreement.”
Port operators may pursue guarantees for returns on the money they’d invested if Labour wins in July
GB NEWS
“Obviously, that’s not something the government wanted, so it didn’t push that and it’s now led to a lot of pain and aggravation for the ports’ industry [which has been] developing, building and preparing at pace for the controls that came in [in April],” he added while speaking to Politico.
He confirmed that British ports would be seeking “some kind of financial resettlement” from a hypothetical Labour government “to make sure they have not been left out of pocket”.
The BPA exec said he estimated ports have so far shelled out £100million on the facilities – but that pales in comparison to existing taxpayer funding.
Britons have so far contributed £200million through the government’s Port Infrastructure Fund, alongside six-figure annual running costs for an average customs facility.
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That figure is dwarfed by recent National Audit Office reports which state that “more than £4.7billion” has been spent on “implementing post EU exit border arrangements and improving border performance”.
Despite the consumer-side benefits of a free trade SPS agreement, Ballantyne warned that Labour reversing the policy in power would leave much of that 10-figure sum “completely wasted”.
Geraint Evans, CEO of the UK Major Ports Group, the trade association which represents larger British commercial ports, told Politico that “any change in policy would be welcome to allow ports to recover costs through a HM government fund.”
Back in January, the EU’s ambassador to the UK, Pedro Serrano, had indicated the bloc was “favourable” on the possibility of a future SPS deal.
Pedro Serrano had indicated the EU was “favourable” on the possibility of a future SPS deal
PA/EU
Serrano had also described Brexit as a “divorce” – and talked up the possibility of “rebuilding a new relationship” in its aftermath.
But senior diplomats have warned that Labour would have a tough time negotiating with the EU, as the bloc has “moved on”.
And Rishi Sunak has previously accused Starmer of “backing Brussels over Britain every single time”.
GB News has approached the Labour Party for comment.
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