What is really going on in politics? Get our daily email briefing straight to your inbox Sign up Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

The government has found itself embroiled in a fresh Brexit row after they overhauled the no-deal tariff regime due to lobbying f from business groups.

But the new announcement has already been met with a backlash from truckers, farmers and food and drink groups.

Britain first published a temporary tariff regime prior to its original deadline to leave the EU at the end of March, which slashed tariffs to zero on all but around 13% of goods.

But the Road Haulage Association complained that it would have amounted to an extra £15,000 on a typical heavy goods vehicle.

And the government has since backed down slashing the levy on the cost of importing a new heavy goods vehicle from mainland Europe from 22% to 10%.

(Image: PA)

But they are now facing a backlash from the farming lobby.

The National Farming Union said farmers will feel "betrayed" by the plan not to impose tariffs on 88% of goods entering the UK because it says its members face tariffs on exports while overseas rivals will not be taxed.

The NFU says the new regime also risks the UK being flooded with imports produced to lower standards that would be illegal for UK farmers.

And the RHA is still not happy despite the 12% reduction in tariffs, warning that the 10% tariff will "still be crippling".

RHA chief executive Richard Burnett said: “The original proposal of a 22% tariff on HGVs coming in from the EU was unbelievable. A 10% tariff will still be crippling and will severely damage the lives and livelihoods of those responsible for operating the very industry that keeps the UK fit to live in.

“Government is already forcing hauliers to upgrade their vehicles halfway through their working lifecycle to meet new clean air rules. These tariffs will see consumers facing higher prices in the shops as operators’ margins are squeezed even tighter.

NFU President Minette Batters has said the government has severely undermined the British farming industry by confirming it will remove the tariff safeguards for a number of key agricultural sectors.

These include grains, eggs, fruit and vegetables and a number of dairy products.

The Food and Drink Federation have also hit back at the new tariffs regime describing it as both "confusing and complex" for businesses.

The FDF say the changes will not create a "big win for consumers" suggesting that shoppers will not see a fall in prices.

(Image: Newcastle Journal)

FDF Policy Manager Dominic Goudie said: “As FDF said in March, adjusting to this new schedule is both confusing and complex for businesses. This is not going to create a big win for consumers.

"The investment made right across the supply chain in preparing for a no-deal Brexit means prices will likely increase regardless of the Government’s tariff decision today.

“New tariffs will apply to some foods that are currently imported tariff-free, yet no tariffs will be applied to goods that cross the border between Ireland and Northern Ireland.

"At the same time, UK exports to the EU will face the EU’s prohibitively high most-favoured-nation tariffs. These changes to tariffs facing both imports and exports will lead to massive trade distortions that will be bad for business and consumers alike.

“Many food and drink manufacturers who trade with the EU will now question whether the UK is the right place for them to be."

NFU President Minette Batters said: “I wrote to the Prime Minister only a few weeks ago to express our concerns with the approach the government took back in March to import tariffs in a no-deal scenario.

"But with the chances of us leaving in less than four weeks without a deal increasing by the day, the Prime Minister has missed a real opportunity to back British farmers.

“Farmers and growers are understandably anxious to know that the government will take all steps necessary to help the sector avoid the worst impacts of leaving the EU without a deal.

"Instead we will see – from day one – farm businesses facing new, high tariffs on much of the 60% of our exports that go into the EU, while tariffs on goods coming into the UK will be set far, far lower and in many cases won’t be applied at all.

"In particular, British egg farmers, British cereal farmers, our horticultural growers and many of our dairy farmers will have zero protection against cheap imports coming in from around the world.

Tariffs will be maintained on imports of bioethanol from outside the UK in an attempt to protect domestic refineries amid fears British producers would be hit by cheaper imports.

Some clothing shipped into the UK will now see taxes of between 8 to 12% placed on them, although tariffs will be kept at zero for clothes produced in developing countries such as Bangladesh, Cambodia, Myanmar and Sri Lanka to protect their economies.

DIT said tariffs on goods such as New Zealand honey will fall from 17% to zero, while grapes from Brazil will drop from 15% to zero.

Dr Adam Marshall, director general of the British Chambers of Commerce, said: "The latest temporary tariff regime only contains three changes, so businesses will be frustrated that it took government so long to publish the updates - needlessly extending uncertainty around the entire future tariff schedule.

"The delay has real-world impacts for businesses trying to plan for the unwanted prospect of a no-deal in a matter of weeks.

"It is encouraging that a review process will be in place for firms to raise concerns about particular tariffs, but this must be handled cautiously by government as the potential for sudden and unexpected changes isn't conducive to building business confidence or supporting long-term planning."

Trade Policy Minister Conor Burns said: “The UK will be leaving the EU on 31 October and we are working with businesses to ensure the UK is ready to trade from day one.

“Our temporary tariff regime will support the UK economy as a whole, helping British businesses to trade and opening up opportunities for business to import the best goods from around the world at the best prices for British consumers.”

Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “The average cost of preparation to small exporters and importers of putting contingencies in place is £3,000.

“Fundamentally, small firms are crying out for two things at this point: a pro-business Brexit deal and financial assistance to help manage the costs of uncertainty.”