An historic Budget with silver linings
Chancellor Rishi Sunak yesterday announced the spring Budget, making headlines around extending the furlough scheme, fiscal policy and a ‘super-deduction’ encouragement for investors – something our very own Paul O’Donnell has explained in more detail here.
The UK has managed to fight off the worst of the pandemic in terms of its impact on employment rates, according to the FT, with the Office for Budget Responsibility predicting a “a swifter and more sustained economic recovery”.
Politico reports that the virus may have allowed the UK to avoid a Brexit-induced recession, saying “Covid-19 is a big enough economic hole to hide Brexit in”.
Eight new freeports announced
Among the major announcements yesterday was the news that eight regions will be granted freeport status.
The eight successful English bids were: Thamesport, Felixstowe and Harwich, Humberside, Liverpool City, Plymouth, Solent, Teeside, and East Midlands Airport. Two more will be granted in the devolved administrations.
Thames Freeport in London describes itself as “a digitally-linked economic zone connecting Ford’s world-class Dagenham engine plant, the global ports at London Gateway and Tilbury, and many communities in urgent need of ‘levelling-up’,” reports Lloyd’s Loading List.
Tim Morris, CEO of UK Major Ports Group (UKMPG), told Loadstar of excitement about the “ambitious” projects that had been selected. The UKMPG will form a Freeports Industry Users Group to take forward key aspects of implementation.
Tensions rise over NI grace periods
The EU has claimed that a move by the UK to unilaterally extend grace periods for Irish Sea border checks breaches international law, the BBC reports.
A postponement of new controls for supermarkets and their suppliers was due to end on 1 April, but this deadline has been extended by Lord Frost in his first act as minister for UK-EU relations.
He is also likely to prolong a similar moratorium on declaration requirements for parcel movements, the Times reports.
The Guardian reports that some Northern Irish loyalist groups no longer recognise the validity of the Good Friday Agreement.
The government confirmed it will extend the grace period for parcel movements from GB to NI yesterday, with a similar postponement of customs checks also being made for supermarket supplies.
The EU has postponed its date for ratifying the EU:UK trade deal in response, according to the Guardian, while the FT reports EC vice-president Maros Sefcevic saying that the bloc will take legal action against the UK “soon”.
NI Secretary Brandon Lewis has defended the move as “legal” in the Telegraph this morning, while Stormont leaders are at loggerheads over the legitimacy of it, the BBC reports.
The episode is straight out of the Lord Frost playbook, reports Politico.
Not ready for Phase 2 border checks
Industry sources have told Loadstar that traders are not ready for SPS checks that are due to be introduced for GB:EU trade from 1 April.
There is also uncertainty about the readiness of new UK systems for the controls, including IPAFFS (the Import of Products, Animals, Food and Feed System).
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