Hauliers gear up for hard Brexit

Preparation is underway by road transport groups for the potential impact of a so-called ‘hard Brexit’ approach to Britain’s departure from the European Union.

The prime minister Theresa May recently announced that she intends for the UK to leave the European single market, which guarantees the free movement of goods, services, capital and labour between states – arguing that remaining within it would be tantamount to not leaving the EU at all.

Mrs May also signalled her intention to withdraw from full membership of the customs union, which imposes a common external tariff on goods entering the EU, and prevents member states from placing tariffs on goods and services as they cross borders within it.

Existing arrangements would be replaced, the prime minister said, by “a bold and ambitious free trade agreement with the European Union”, allowing for “the freest possible trade in goods and services between Britain and the EU’s member states”.

A landmark ruling by the Supreme Court, which ruled that Parliament must vote to approve the triggering of Article 50 – which would begin the EU withdrawal process – had cast some uncertainty over the extent to which government would be able to implement its preferred approach to Brexit.

But with a debate ongoing in the House of Commons at the time of publication, it is widely expected that MPs and the House of Lords will ultimately give Article 50 their backing.

Earlier in January, the Road Haulage Association (RHA) responded to Mrs May’s announcement by warning that the government would need to address key transport concerns to ensure Brexit is a success.

“We need to maintain fluidity through the ports for the trucks that provide a vital trade service,” said chief executive Richard Burnett.

“Should the UK exit the single market and the customs union, it is clear that HM Customs will need to have significantly greater resources than at present.

“We will have to have the ability to clear customs without delay, 24/7. The Customs resource, as it stands, quite simply would not be able to cope.”

He said the RHA would call on government to establish a working group tasked with scaling up Customs resources.

“It is essential for supply chains in manufacturing, food distribution and retail that HMRC has sufficient resources to cope from Day 1 with the increased volume,” he continued.

“Leaving the single market and customs union will inevitably add a degree of administrative cost. Far more damaging, however, would be if the supply chain slowed down as a result of an HMRC logjam.”

The RHA also emphasised the importance of ensuring the industry could still bring in workers from abroad where needed.

“Around 60,000 foreign lorry drivers currently work in the UK and the industry would not function properly without them,” the association said.

Meanwhile, the Freight Transport Association (FTA) welcomed Mrs May’s commitment to “tariff-free and frictionless trade” with the EU.

“FTA will be examining the implications for Britain’s future trade with Europe arising from the prime minister’s statement,” said the association.

“The degree of access to the European market agreed for the UK will be largely determined by the new free trade and new customs agreements, and these will be key topics of discussion [during FTA’s Keep Britain Trading conference on 15 March].

“The UK road transport industry is also highly reliant on EU nationals who work as drivers, warehouse operatives and in other key roles across the sector.

“The continued ability of FTA members to employ and recruit these key workers will be essential to their future business success and FTA will be seeking assurances that the government recognises and accommodates the essential needs of the logistics sector.”

Andrew Baxter, managing director of logistics operator Europa Worldwide, said the prime minister had “outlined the type of Brexit I expected and support”.

He added: “In regards to the customs union, I’d like to see the most simplified system of trading between the UK and Europe as possible, with as few barriers as possible.

“If customs clearance is reinstated, it is vital that the government understands the need for greater resources to accommodate the system to ensure goods can be cleared as quickly as possible.

“I’d like to see a 24 hour customs clearance system which would massively speed up the movement of shipments. I’d also suggest the government creates a working group to look at how to optimise customs clearance if it is reinstated.”