It contains the Government’s own expectations at time the Brexit deal was done of the border/ checks required within UK, in the Irish Sea as a result of the PM’s deal:
4.5.1: Customs: “Any processes normally required on goods entering EU will be implemented at NI-RoW border or on trade moving East-West between GB & NI”
4.5.4.2.1 “Agrifood goods enter NI from GB via Border Inspection Post as required under EU law”
264: “additional documentation required on all agrifood goods moving from GB to NI.. incl EHCs, PCs, admin cost”
266: “Protocol will require additional checks covering all products subject to SPS”.. “upper limit in Table 8”
Table 8: “%age subject to physical checks 20%-100%”
4.5.4.2.2 Manufactured goods regulation
“businesses in Great Britain placing goods on the market in Northern Ireland will need to ensure they are complying with the relevant EU rules and could be subject to risk based checks at the boundary of the regulatory zone”
further corroborated by internal leak of this HMT document two months later, which detailed
- table of the “potential fetters” to GB-NI trade, both ways
- listed “previous commitments” ie in Theresa May’s Brexit deal for “unfettered access” no longer guaranteed in Johnson deal
.. this leaked Treasury presentation in 2019 went on to say checks and declarations from the Protocol would be “highly disruptive to the NI economy” that SMEs are “likely to struggle to bear cost” and acknowledged that it would increase the price of high street goods…
And then there this separate leak of a Dexeu memo, reported by both myself and the FT warning of "security, social and economic impacts" of “high levels” of checks and controls as a result of the Brexit deal’s NI Protocol…
FTA negotiation created within it scope to lessen some of these frictions, but the above pretty clearly show that many of the consequences now seen of the new Brexit deal NI Protocol, weren’t just predictable, & predicted internally, but actually published by Government itself.
If plan all along was to renege on Protocol as some former insiders have suggested, the Econ challenge is deal signed gave EU hard leverage by allowing “cross retaliation” from the withdrawal agreement to the free trade deal.
Ie tariffing of key UK export industries/fishing
Counter leverage here would be UK tariffing European imports, but that would be quite the dilemma during stagflationary period/already double digit inflation, esp in any period of dependence on eu imports of eg fresh produce. Indeed policy direction has been abandoning new checks
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UK GDP up 0.8% in Q1 of this year, making economy 0.7% bigger than pre pandemic…
All that growth occurred in January, with flat economy in Feb, and small contraction in March in first few days of Russia-Ukraine invasion
Vs rest of G7, UK had second fastest growth in Q1 behind Canada, (awaiting Japan) some of that is still rebound from bigger falls before. Comparing with growth from the end of 2019, before pandemic UK 4th out of G7
UK trade deficit widened to a record 5.3% of GDP in Q1 2022 ..
Important story from @BBCSimonJack - despite fall in UK wholesale gas prices to a third of invasion peak… energy companies telling Ofgem that the energy cap will still have to be hiked significantly, to account for the fact they’ve already bought the gas bbc.co.uk/news/business-…
This is rather up for debate and sets up quite the three way challenge between Government, Ofgem and the energy companies…
For what it’s worth day ahead gas prices have just reached 56 pence per therm versus £5 at invasion peak. Obviously futures prices are more like £2 tho
Decent UK gas storage might have been helpful right now can buy gas for pennies when not needed, and it costs pounds when it is… right now market contacts tell me UK ports are being used to offload liquefied gas which is then piped to EU storage facilities, as UK closed storage.
And might there be a prevalence “Maginot Line” thinking - overly focusing/ fighting the political frontlines of the previous election battle instead of current ones?
Defra min Prentis said Gov not ‘in denial’ about losing 500 seats /1
The minister went on to argue that the PM had to stay in office to tackle the cost of living crisis…
The political analyst who spotted the impact of Ukip on working class Labour voters, Prof Matthew Goodwin, said that these results are the next stage of realignment and the Conservatives have to decide whether to lean into it… /3
Coming up on @BBCNewsnight tonight my interview with the amazing @arcadefire Win and Regine about being taken down the lockdown rabbit hole in their new album We, the tyranny of the streaming algorithms, family, fame, Haiti, strawberries and crabs…
Not sure anyones managed to have an interview with a Bank of England Governor and Grammy-winning indie-rock stars broadcast on the same day before….
UK economy to shrink next year as cost of living hit worsens, forecasts Bank of England, as it raises rates by 0.25%.
Unanimous decision to raise rates by 0.25%… 3 MPC members voted for 0.5… even as forecasting economy in recessionary territory {predicting two quarters of contraction, but not consecutive, and fall in econ over 2023]