Trade uncertainties are continuing to fracture GB-NI supply chains, ultimately delivering higher costs for businesses and less choice and increased prices for Northern Irish consumers.
The Windsor Framework’s complicated regulatory systems and checks are actively hindering GB-NI + NI-GB trade, growth, and opportunities. At its core, this impacts every consumer in Northern Ireland.
We’ve been saying it for years, and others are now making this point: moving the ‘at risk’ goods definition to the point of sale when we know a product’s final destination would address many of the current trade issues. It’s a straightforward fix that would reassure businesses and go some way towards tackling the challenges they’re facing.
As we continue to engage across our industry and with companies and trade bodies in different industries, it’s clear that GB-NI freight volumes have dropped. Transport businesses are grappling with higher operating costs, and we’re seeing evidence of trade diversion. Some have abandoned GB-NI trade routes completely, choosing instead to supply directly from Europe into Dublin. This shift damages businesses on both sides of the Irish Sea.
Some sellers on online retail sites like Amazon and eBay are taking a step back too. Increasingly sellers are choosing not to trade into Northern Ireland, with others making only certain items available, thus directly limiting consumer choice in one part of the United Kingdom.
Looking ahead, firms are bracing for the mandatory ICS2 system launching on 1 September 2025. There’s concern this will make an already difficult situation worse. As a group of established hauliers recently told me, one long-running issue is the lack of communication from HMRC officials on the ground. Trader Support Service uncertainties persist, despite assurances to the contrary, and businesses across the supply chain from manufacturers to SME retailers need clearer communication in plain English about what’s required of them.
A recent FSB report echoed our concerns around poor communication. Businesses drowning in paperwork are seeking basic answers to old questions. They need real-time support, and up-to-date information. Looking at the definition of ‘at risk’ is the place to start addressing these concerns.
We’ll continue to meet officials to find a way forward. As we say in all our engagements, the economic consequences of getting this wrong stretch far beyond any one sector. It’s time for ministers and officials to step up and find practical solutions to these pressing issues. The current approach to GB-NI trade isn’t working for businesses or consumers.
Richard Smith, MD, RHA
