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New post-Brexit border controls on animal and plant products imported from the EU will cost businesses £330m a year in extra charges, the government has admitted.

Lucy Neville-Rolfe, a minister of state in the Cabinet Office, confirmed the figure in a letter seen by Sky News to Labour MP Stella Creasy, who chairs the Labour Movement for Europe.

On the costs of the new Border Trade Operating Model (BTOM), which will be phased in from January 2024, Baroness Neville-Rolfe wrote: “It will depend greatly on how businesses adapt their business models and supply chains to integrate the new controls regimes. We estimate these new costs of the model at £330m pa [per annum] overall, across all EU imports.”

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It comes ahead of a speech by Business and Trade Secretary Kemi Badenoch at the Conservative Party Conference on Monday, who will claim opponents of Brexit are “relentlessly wanting to talk down our country” and insist that while there are challenges posed by Brexit, “we are working to fix them”.

From January, European businesses exporting plant and animal products to the UK will have to submit extra paperwork known as health certificates, with physical checks costing up to £43 coming into force from April.

The checks – which have been delayed repeatedly since the Brexit deal came into effect in January 2021 – were due to start this month but were pushed back in August amid warnings the strategy risks further pushing up food prices.

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The government has admitted the new system will add to inflation, but said this will be “minimal” at less than 0.2% over three years.

In her letter, Baroness Neville-Rolfe said the checks were required because since the UK left the EU “we have not had full biosecurity checks in place”, meaning it has become “more challenging to intervene to combat threats to animal, plant and human health”.

She pointed to the spread of pests and diseases across Europe – such as African Swine Fever – adding it would be “dangerous to underestimate the huge costs both to lives and livelihoods that an outbreak of these diseases could cause to the UK”.

The cabinet minister went on to to say that “around half” of the £330m figure is estimated to be on health certification, but this was a “saving” of £520m compared to a previous model that was going to be introduced in 2022.

However Ms Creasy suggested this was disingenuous as if the UK had not left the EU there would be no extra costs at all.

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Stella Creasy chairs the Labour movement for Europe

She said: ‘The government thinks it can get away with presenting red tape worth £330m as a good news story because it could have been higher- forgetting that its all extra costs that businesses can ill afford when they have already had a massive increase in red tape thanks to Brexit.

“British companies struggling with border paperwork to import food will have little choice over these charges meaning it’s likely British consumers will have to pick up the bill. Ministers need to urgently rethink for the sake of all those already suffering in the cost of living crisis.”

Industry bodies have repeatedly warned the government’s new model would likely push up prices as businesses would not be able to swallow the associated costs.

But on the other hand the National Farmers Union (NFU) said the lack of controls put them at a commercial disadvantage as British exports to the EU have been subject to health and safety checks for three years “while the EU has enjoyed continued easy access to the UK marketplace.”

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The checks on EU imports are legally required under the terms of the Brexit trade deal with the EU.

The BTOM, which will be a global regime, aims to use more technology and digitisation to reduce bureaucracy than under the original import model devised post-Brexit.

William Bain, head of trade policy at the British Chambers of Commerce, said: “If the border plans result in fast and effective controls, allowing the UK to take advantage of new digital trade arrangements, then additional costs will be slightly easier to swallow.”

However he added: “Coming in the middle of a cost of living crisis, and with inflation still high, we would urge the government to consider ways to mitigate this huge expense”, suggesting the inspection charges would be “a good place to start”.

The checks are one of 20 new major policy changes between now and the end of 2024 that will impact British companies that trade internationally, according to the Institute of Export & International Trade.

Marco Forgione, the organisation’s director, said the digitalisation of UK trade has the potential to add £25bn to the country’s GDP but businesses need certainty and support.

“The government cannot defer or delay any longer. They set out a timetable. They’ve got to stick with it,” he told Sky News.

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Starmer refuses to rule out manifesto-breaking tax rises in budget

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Starmer refuses to rule out manifesto-breaking tax rises in budget

The prime minister has refused to rule out manifesto-breaking tax hikes in next week’s budget while speaking to Sky News political editor Beth Rigby.

Sir Keir Starmer was interviewed by Rigby while the pair were in South Africa for a meeting of the G20 group of nations.

Despite the government last year indicating it was not going to raise more taxes, it appears that Wednesday’s fiscal event will involve substantial increases in levies.

The 2024 Labour manifesto said: “We will ensure taxes on working people are kept as low as possible.

“Labour will not increase taxes on working people, which is why we will not increase national insurance, the basic, higher, or additional rates of income tax, or VAT.”

At the start of their interview, the prime minister was asked by Rigby if it was important for politicians to “stick to their word”.

Sir Keir said: “Yes, it is important that politicians stick to their word.

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“They have to make decisions against a political backdrop. And, we’ve also got big decisions to make in the budget that’s coming in just a few days time.”

This caveat matches the expectations that a range of taxes are going to be increased so the government can keep its spending pledges and increase its fiscal headroom amid worsening economic headwinds.

There was chaos last week after the increase in income tax that many had expected to be on the way was revealed to no longer be on the cards.

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Why has chancellor U-turned on income tax rises?

Asked specifically on the manifesto commitment on tax, Sir Keir told Rigby that decisions will be made “against a very difficult backdrop”.

In total, the prime minister refused 12 times to rule out tax rises.

He added it was “important to take the right decisions for our country”.

Rigby pointed out in the lead-up to the 2024 Budget, the prime minister was more unequivocal, saying income tax, national insurance and VAT would not all go up.

The prime minister declined to make the same promise, saying the decisions on tax will be announced on Wednesday.

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However, Sir Keir said the budget will be guided by “principles”, including “fairness”.

The prime minister said the three areas he is “bearing down on” are the NHS, cutting national debt and dealing with the cost of living crisis.

One tax rise that has not been ruled out is what is known as a “stealth tax rise” of freezing income tax thresholds.

Rigby highlighted that in last year’s budget, Rachel Reeves said freezing thresholds will “hurt working people” – and asked the prime minister if he agreed.

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Sir Keir said: “We are going to set out our decisions.

“We will have absolutely in mind that the cost of living is the number one issue for people across the country.”

Pushed again, if working people will have their taxes increased, the prime minister instead mentioned he has people who are “struggling with the cost of living” in mind when making decisions.

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Ex-Coinbase lawyer announces run for New York Attorney General, citing crypto policy

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Ex-Coinbase lawyer announces run for New York Attorney General, citing crypto policy

Khurram Dara, a former policy lawyer at cryptocurrency exchange Coinbase, officially launched his campaign for New York State Attorney General.

In a Friday notice, Dara cited his “regulatory and policy experience, particularly in the crypto and fintech space” among his reasons to try to unseat Attorney General Letitia James in 2026.

The former Coinbase lawyer had been hinting since August at potential plans to run for office, claiming that James had engaged in “lawfare” against the crypto industry in New York.

Law, Politics, New York, Elections
Source: Khurram Dara

Until July, Dara was the regulatory and policy principal at Bain Capital Crypto, the digital asset arm of the investment company. According to his LinkedIn profile, he worked as Coinbase’s policy counsel from June 2022 to January 2023 and was previously employed at the crypto companies Fluidity and Airswap.

James, who took office in 2019, has faced criticism from many in the crypto industry for filing lawsuits against companies on behalf of affected New Yorkers, including Genesis, KuCoin and NovaTech. Whoever assumes the role of New York’s attorney general would have significant discretion over whether to file charges against crypto companies.

Related: New York AG urges Congress to bolster protections in crypto bills

Dara, who said he plans to run as a Republican, also echoed Mayor-elect Zohran Mamdani’s recent winning campaign, citing New Yorkers’ concerns about the cost of living and affordability. Cointelegraph reached out to Dara for comment, but had not received a response at the time of publication.

The lawyer who represented XRP holders is also running for office again

As the deadline approached for candidates for various offices to announce their runs, former Massachusetts senatorial candidate John Deaton said he would try to unseat a Democrat again. 

Deaton ran against Senator Elizabeth Warren in 2024, losing by about 700,000 votes. On Nov. 10, however, he announced he would run as a Republican again, attempting to unseat Senator Ed Markey in 2026.