Hauliers left short under £2.1bn no-deal Brexit funding package, FTA warns

A £2.1bn funding package for no-deal Brexit preparations is not enough to cover the costs the haulage industry will incur, the FTA is warning.

The funding package, announced by chancellor Sajid Javid last week, includes £1.1bn already committed to plans for 31 October and £1bn in reserve.

The move came as Bank of England governor Mark Carney warned that a no-deal Brexit would deliver an “instantaneous shock” to the economy, resulting in a falling pound, rising inflation and slowing GDP.

Javid said the £2.1bn funding injection will ensure the UK is ready to leave the European Union “deal or no deal”.

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Measures include £344m for border and customs operations, including extra funding for Operation Brock and 500 border staff, and £108m to support businesses. Another £434m is to be dedicated to ensuring vital medicines are available, while £138m will fund a public information campaign.

FTA deputy chief executive James Hookham described the funding package as a "damp squib". He said: "The government’s no-deal funding for business falls well short of what will be required to ensure that all those organisations that trade with the EU will be able to continue operating smoothly and efficiently in the event that the UK leaves the EU without a deal."

Pointing out that funds allocated to business are just 5% of the total amount, equating to "only" £745 per business , he warned: "This is far less than will be needed for each business to understand and implement the procedures, staff and systems required for routine no-deal trading. The allowances announced may enable the government to say they have helped business, but the reality once again leaves logistics operators carrying the burden of adapting to and adopting new operating procedures at the last minute and potentially carrying the can for a lack of government planning.

“Industry deserves and needs the appropriate boost, rather than the damp squib promised today.”

RHA chief executive Richard Burnett said that while the additional funding is welcome, he warned it will be "a tall order” to get businesses ready and new border staff recruited and trained in time for 31 October.

He added: “This is big picture and what we badly need is detail. We need a complete, practical how-to guide to ensure traders know what they have to do to get across the borders after Brexit.”