At last year’s Budget, the Chancellor took the decision to fund 75% of the domestic share of the Renewables Obligation through the Exchequer and ended the levy-funded Energy Company Obligation. These decisions took on average £150 of costs off household energy bills and are forecast to reduce inflation by over 0.2 percentage points in 2026/27.

The Government’s fiscal plans – which factor in the impacts of the Chancellor’s decisions on levies – are bringing down borrowing and debt, keeping the public finances on a sustainable path and supporting the Bank of England to keep inflation as low as possible. According to the IMF, between 2025-2030, the UK will be reducing borrowing more than any other G7 country.

The Government keeps all taxes under review and is introducing a new framework to subject levies to enhanced scrutiny and ensure they are affordable, value for money and do not impose unnecessary costs.

Defra continues to monitor and review the impacts of new controls introduced under the Border Target Operating Model (BTOM). We will work closely with industry, trade partners and enforcement agencies to minimise costs to trade and disruption, while continuing to protect our biosecurity.

The Government’s modelling of the inflationary impact of the BTOM uses a peer-reviewed econometric model, including the impacts of non-tariff measures related to checks such as the cost of Export Health Certificates and port fees, and upstream impacts such as administrative processing time, training, certificates of origin and security deposits or guarantees when moving agricultural goods under licence.

Analysis has indicated the BTOM policies would lead to an approximate increase in consumer food price inflation of less than 0.2 percentage points over a three-year period

An outbreak of a major disease could have a much more significant impact. The 2001 outbreak of 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 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.

We understand that inflation, if higher than income growth, can reduce households’ real income, and that higher prices can increase the cost of living for people and households.

The government is working with international partners to tackle global supply chain disruption and providing support worth around £12 billion this financial year and next to help people with the cost of living. This includes cutting the Universal Credit taper rate to make sure work pays, freezing alcohol and fuel duties to keep costs down, and providing targeted support to help vulnerable households with their energy bills and other essentials.

Economies are experiencing high inflation, mostly due to pressures from rising energy prices and disruptions to global supply chains. These global pressures are the main driver of higher inflation in the UK.

The Government’s commitment to price stability remains absolute. The Bank of England is responsible for controlling inflation – since the Bank became responsible for controlling inflation it has averaged close to the 2% target.

We understand that inflation, if higher than income growth, can reduce households’ real incomes, and that higher prices can increase the cost of living for people and households.

That is why we have taken targeted action to help families with the cost of living, including through freezing fuel and alcohol duties, the energy price cap, the Warm Home Discount and the £500m Household Support Fund to help the most vulnerable families this winter. We are also making work pay by reducing the Universal Credit taper rate from 63% to 55%, increasing work allowances by £500 per year and increasing the National Living Wage to £9.50 per hour.