The approach and plans set out within the Border Target Operating Model (BTOM) remain unchanged. We will continue to support business readiness throughout the implementation of checks and take a sensible pragmatic approach to enforcement.

The government’s consumer food price inflation model for the BTOM included an assessment of policy measures likely to affect the cost and/or quantity of traded products, including the Government-run BCP operating costs that will be recovered via a Common User Charge. Estimates of the cost and impact of the Charge were included in the modelling of the inflationary impact of the BTOM and we stand by these estimates.

This data includes a mix of published and unpublished commercially sensitive data sources. To publish only a partial picture of that data would not be in keeping with statistical propriety.

The approach and plans set out within the Border Target Operating Model (BTOM) remain unchanged. We will continue to support business readiness throughout the implementation of checks and take a sensible pragmatic approach to enforcement.

The government’s consumer food price inflation model for the BTOM included an assessment of policy measures likely to affect the cost and/or quantity of traded products, including the Government-run BCP operating costs that will be recovered via a Common User Charge. Estimates of the cost and impact of the Charge were included in the modelling of the inflationary impact of the BTOM and we stand by these estimates.

This data includes a mix of published and unpublished commercially sensitive data sources. To publish only a partial picture of that data would not be in keeping with statistical propriety.

In the Draft Border Target Operating Model (BTOM), published in April 2023 the UK Government asked industry to provide information on their readiness for the proposed regime. The questions included:

1. What challenges exist for the private sector in meeting the proposed timeline for introducing the new model and how can specific business models for importing be further supported to prepare?

2. What further detail is needed in order for businesses to prepare for and implement the new Border Target Operating Model?

A summary of responses from stakeholders can be found in the Final BTOM, published in August 2023. In response to stakeholder feedback on the Draft BTOM, we made a change to the timeline for the introduction of Sanitary and Phytosanitary (SPS) controls to give more businesses time to prepare. The Government is delivering a programme of engagement with stakeholders across all sectors in all parts of the country and with key European Union trading partners to ensure readiness. There are no current plans for further publications on industry readiness as such, although discussions with stakeholders continue.

However, we expect to publish the Government Response to the charging arrangements at government-run border control posts consultation in the coming weeks. Arrangements for physical checks for goods from the island of Ireland will be announced in due course - the UK Government is continuing to work with the Scottish and Welsh Government as well as the newly restored Northern Ireland Executive on this issue. We aim shortly to publish revised rules for importing animal products, plants and plant products into Great Britain for personal use, including those sent as post and parcels. All other supplementary guidance outlined in Annex H of the Final BTOM that was due to be published by end February 2024 has been released, and technical information surrounding the BTOM was issued in mid-February here: https://www.gov.uk/government/publications/border-target-operating-model-information-leaflets-for-businesses.

With regards to live testing, traders, carriers and hauliers have been selected to take part in operational testing in conjunction with Defra and local Port Health Authorities and include a mix of large and smaller traders where possible. The tests vary according to route route, mode and commodity. Onboarding of traders into the testing regime, including some smaller businesses, is ongoing at this time with operational testing continuing in March and April.

Estimates for the Common User Charge were included in the modelling of the inflationary impact of the Border Target Operating Model. The government used a wide array of data to input into the peer-reviewed model, including commercially sensitive data sources. To publish only a partial picture would not be in keeping with statistical propriety.

Alongside other measures that are likely to have an economic impact on international trade, estimates for relevant user charges and fees - including the Common User Charge - were included in the modelling of the inflationary impact of the Border Target Operating Model.

We calculated the inflationary impact over a 3 year period through the academically peer-reviewed food price inflation model as its full effect on consumer food prices will not be immediate. As such, we have no plans for a formal review of measures introduced through implementation of the Border Target Operating Model one year after introduction. We will review the Border Target Operating Model in line with the Magenta Book guidance on evaluation and further announcements will be made to Parliament as and when required. The Magenta Book guidance can be found here: https://assets.publishing.service.gov.uk/media/5e96cab9d3bf7f412b2264b1/HMT_Magenta_Book.pdf

We have not identified any differential impact on traffic flows, congestion and emissions that might be caused by different levels of user charges.

Alongside other measures that are likely to have an economic impact on international trade, estimates for relevant user charges and fees - including the Common User Charge - were included in the modelling of the inflationary impact of the Border Target Operating Model.

We calculated the inflationary impact over a 3 year period through the academically peer-reviewed food price inflation model as its full effect on consumer food prices will not be immediate. As such, we have no plans for a formal review of measures introduced through implementation of the Border Target Operating Model one year after introduction. We will review the Border Target Operating Model in line with the Magenta Book guidance on evaluation and further announcements will be made to Parliament as and when required. The Magenta Book guidance can be found here: https://assets.publishing.service.gov.uk/media/5e96cab9d3bf7f412b2264b1/HMT_Magenta_Book.pdf

We have not identified any differential impact on traffic flows, congestion and emissions that might be caused by different levels of user charges.

The Border Target Operating Model (BTOM) outlines a pragmatic and phased implementation approach starting from January 31 2024, designed to give all relevant parties sufficient time to prepare ahead of its introduction.

We will continue to engage with and monitor the sentiment of stakeholders across all parts of the United Kingdom, affected sectors, and our trading partners around the world to ensure readiness for the phased introduction of our new model.

The Government will run a series of in-person and online engagement events, and publish guidance detailing actions required as a result of the changes on GOV.UK. For example, we will work closely with our key trading partners to ensure the capacity and availability of certifiers for Export Health Certificates does not become a barrier to trade.

To ensure our own readiness for implementing the Model, departments with specific responsibilities will run and end-to-end operational testing, working with industry to identify any issues and support a smooth transition for each phase of the Model.

The Model represents an estimated £520 million saving for all importers compared to the Model originally planned for introduction in 2022. The actual cost to business will greatly depend on how businesses adapt their business models and supply chains to integrate the Model. As outlined in the BTOM, we estimate the costs of the Model at £330 million per annum overall, across all EU imports, which is around 0.13% of the overall value of EU goods imports to Great Britain. We estimate the measures introduced through the BTOM would have a minimal impact on consumer food price inflation of less than 0.2% in total over a 3-year period.

In contrast, an outbreak of a major disease could have a much more significant impact: the 2001 Foot and Mouth disease cost £12.8 billion in 2022 prices, £4.8 billion of which was cost to Government and £8 billion cost to the private sector.

The Government ran a consultation on charges for Government owned Border Control Posts from 12 June to 9 July, including a call for views on our intention to administer a single Common User Charge for eligible Sanitary and Phytosanitary consignments at government-run Border Control Posts. The outcome of this consultation will be published shortly.

The information requested falls under the remit of the UK Statistics Authority.

Please see the letter attached from the National Statistician and Chief Executive of the UK Statistics Authority.

The Rt Hon. the Lord Naseby

House of Lords

London

SW1A 0PW

05 June 2023

Dear Lord Naseby,

As National Statistician and Chief Executive of the UK Statistics Authority, I am responding to your Parliamentary Question asking when the list of items used to calculate the core inflation figure were last reviewed (HL8157).

The list of items used to calculate Consumer Prices Index (CPI) and Consumer Prices Index, including owner occupiers’ Housing costs (CPIH), and their core equivalents, is updated on an annual basis.

Prices were first collected for the most recent update in January this year. In 2023, 26 items were added to the CPIH basket, including e-bikes and frozen berries. 16 items were removed, including digital compact cameras and non-chart CD albums bought in store.

Further information can be found in our Consumer price inflation basket of goods and services: 2023 release [1].

Yours sincerely,

Professor Sir Ian Diamond

[1] https://www.ons.gov.uk/economy/inflationandpriceindices/articles/ukconsumerpriceinflationbasketofgoodsandservices/2023

Living standards, as measured by real household disposable income per head, grew at their fastest rate in 14 years in 2015. This took living standards to their highest ever level, and they are forecast to have risen further in 2016.

From April 2017, the Personal Allowance will rise to £11,500 and the National Living Wage to £7.50 an hour, meaning families will keep more of what they earn. We are helping households with the cost of living by increasing the supply of affordable housing, banning letting agents’ fees and freezing fuel duty. We also believe our investment to boost productivity will raise living standards in the long run.

On a monthly basis, total input prices rose by 0.2% in August 2016, after rising by 3.1% in July 2016 and by 1.7% in June 2016.

On a monthly basis, core input prices rose by 0.2% in August 2016, after a rise of 4.2% in July 2016 and 0.7% in June 2016.

The latest ONS producer price inflation data can be found in the following release (also attached): https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/producerpriceinflation/august2016#input-prices-summary