Boris Johnson is willing to sacrifice British business to protect his idea of Brexit – and that’s a big change Government tells businesses to prepare for customs checks on goods

After more than three years of wishful thinking, UK businesses have been handed a hefty dollop of realism following warnings from ministers that trade with the EU will be less streamlined post-Brexit.

Michael Gove, the Chancellor of the Duchy, told companies that predominantly trade with the continent that it was an “inevitability” that there will be “some friction” when it comes to exporting and importing goods with the bloc.

Mr Gove admitted that this new dawn would be a “significant change” for businesses, but insisted there was sufficient time to manage the the transition.

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In practice, it means firms will have to fill out safety and security declarations, while adding that “almost everyone who is exporting” will need to complete customs declarations.

Really costly

The shift in stance from the Government prompted the Freight Transport Association to warn the added bureaucracy would prove “really costly” for businesses.

Industries, such as car manufacturers, which rely on “just in time” supply chains that enable parts and goods to be shipped to and from the UK seamlessly often within 24 hours are likely to be hardest hit by the changes.

The admission from the Government marks a dramatic departure from the approach taken by Theresa May, who was guiding the UK towards a much softer, closer Brexit deal with the EU that placed “frictionless trade” at its heart.

Boris Johnson’s thumping victory in the general election has handed him the political mandate to steer the country towards greater autonomy and a far harder Brexit.

It was always suggested that the Prime Minister would take a more pragmatic approach to future trading arrangements with the EU. Trade experts claimed that he would eventually bow to the demands of business for fear of weakening the UK’s economy.

Furthermore, any additional costs borne by industry will inevitably be passed on to the consumer, meaning the public will see their cost of living rise after Brexit, which is hardly a vote-winner.

The British Retail Consortium (BRC) said the Government would have to move fast to get infrastructure in place for the start of 2021, warning that without adequate preparations the availability of goods on shelves would be disrupted, with fresh fruit and vegetables especially vulnerable.

Not business as usual

As Raoul Ruparel, Mrs May’s former Brexit adviser told Sky News on Monday evening: “Boris Johnson’s deal is closer to no trade agreement than to membership, whereas May’s was closer to membership than no agreement.

“It is a big step down from the May deal, because she wanted to avoid border friction and customs checks and regulatory checks.”

It could be that the Government’s latest position is more posturing in an attempt to show the EU it is willing to leave on “Australian-style” terms, ie without a free trade agreement.

But taken at face value, it shows Mr Johnson is willing to face down big business in the pursuit of a cleaner Brexit. One thing is for sure, it will no longer be business as usual come 1 January next year.