Brexit trade system faces crunch time as UK government weighs options

The UK government is reconsidering the future of its £180 million Brexit trade system, known as the "Single Trade Window" (STW), a project aimed at simplifying the process for traders by allowing them to file paperwork digitally in one place.

Initially conceived in December 2020, the STW was touted as “the world’s most effective border,” intended to reduce costs and time for businesses involved in cross-border trade. The government estimated the total cost of the project at £330 million, but after years of delays, the system has yet to be implemented, Caliber.Az reports citing foreign media.

Now, the Cabinet Office is consulting on the future of the program, with four options being considered. These include scrapping the project entirely, maintaining the current STW infrastructure and seeking future funding, exploring a "data-centric" approach that would involve a hub for third-party developers or a two-way messaging system for businesses, or continuing with the full-scale STW delivery as initially planned.

Liam Byrne, chair of the UK parliament’s business and trade committee, expressed concern, stating, “The prize of the single trade window was a quarter of billion in savings for business. If it’s not happening then the UK is going to need a really ambitious reset with the EU to cut the red tape strangling our great British exporters, especially small business.”

The delays surrounding the STW are part of broader challenges linked to the UK's new border regime, known as the Border Target Operating Model (BTOM), which has already seen the postponement of checks on medium-risk fruit and vegetables until July. This has led to mounting frustration from businesses who are grappling with the complexity and cost of new procedures.

The British Chambers of Commerce, in a submission to the government, emphasized the potential benefits of the STW, calling for a decision on whether to proceed with the project and a timeline for its delivery. A source close to the plans stressed the importance of the STW for creating “a world-class digital border from a business user experience.”

Conservative peer Lucy Neville-Rolfe, a former Cabinet Office minister, expressed disappointment, saying, “This sounds very disappointing... It uses leading technology to dispense with duplication and elaborate processes and speed up the flow of goods both into and out of the UK.”

HM Revenue and Customs has already spent over £105 million on the project, but further funding remains uncertain. Financial Secretary Spencer Livermore assured that minimizing trade friction remains a priority, and an update on the project’s future will come as part of the next phase of the Spending Review.

By Vafa Guliyeva