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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.

stella creasy
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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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IRS reveals final regulations for crypto broker rules

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IRS reveals final regulations for crypto broker rules

The Internal Revenue Service did not include decentralized exchanges or self-custodial wallets under its broker reporting requirements.

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Reform canvasser in PM racism row says he was ‘a total fool’

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Reform canvasser in PM racism row says he was 'a total fool'

A Reform UK canvasser who used a racial slur against Rishi Sunak has called himself a “total fool” and said he has learned his lesson.

Footage from an undercover Channel 4 reporter showed Reform campaigner Andrew Parker using a discriminatory term about the prime minister, as well as saying the army should “just shoot” migrants crossing the Channel.

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Police are now assessing the comments to establish if an offence has been committed, while Mr Sunak said the insult directed at him “hurts and it makes me angry”.

Mr Parker, who was canvassing in Clacton, where Reform leader Nigel Farage is standing, told Sky News the sting operation had “proper taught me a lesson”.

He said: “There’s lots of old people like me who are sick to death of this woke agenda… but on that particular day, I was set up and set up good and proper.

“It’s proper taught me a lesson – I was a total fool.”

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Pressed on his use of the racial slur, he said he was an “old man” and “I still use old words”.

“There’s no racism at all in it. I am a decent guy to be honest”, he added.

In the Channel 4 report, Mr Parker can be heard using offensive language about the prime minister and also discussing migrants arriving in small boats in Deal, Kent

He said: “Army recruitment – get the young recruits there, with guns, on the f****** beach, target practice. F****** just shoot them.”

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Sunak ‘hurt’ over Reform race row

He also described Islam as a “disgusting cult”.

Mr Farage said he was “dismayed” by the “appalling” comments and has sought to distance himself from the campaigner, saying he was simply “someone who turned up to help” and “has nothing to do with the party”.

He has also used reports Mr Parker was a part-time actor to suggest the incriminating film was a “total set-up” – something Channel 4 has strongly denied.

Mr Parker himself says his volunteering for Reform was separate from his acting job – and claims he was “goaded” into making the comments.

A spokesperson for Channel 4 said: “We strongly stand by our rigorous and duly impartial journalism which speaks for itself.

Nigel Farage: 'Mr Parker will not be welcome back'
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Farage has tried to distance himself from the comments

“We met Mr Parker for the first time at Reform UK party headquarters, where he was a Reform party canvasser.

“We did not pay the Reform UK canvasser or anyone else in this report. Mr Parker was not known to Channel 4 News and was filmed covertly via the undercover operation.”

The broadcaster’s investigation also caught another canvasser describing the Pride flag as “degenerate” and suggesting members of the LGBT community are paedophiles.

A spokesman for Essex Police said the force is “urgently assessing” the comments “to establish if there are any criminal offences”.

PM ‘hurt and angry’ over racial slur

Mr Sunak reacted furiously to the comments and said Mr Farage had “some questions to answer”.

He said: “My two daughters have to see and hear Reform people who campaign for Nigel Farage calling me an effing P***. It hurts and it makes me angry and I think he has some questions to answer.

“And I don’t repeat those words lightly. I do so deliberately because this is too important not to call out clearly for what it is.

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“As prime minister, but more importantly as a father of two young girls, it’s my duty to call out this corrosive and divisive behaviour.”

Unrepentant Farage doubles down

However, Mr Farage was unrepentant when grilled on the row during a BBC Question Time leaders’ special, saying he was “not going to apologise” for the actions of people associated with his party.

Reform UK has faced a series of controversies relating to election candidates saying offensive or racist things.

Asked why his party “attracts racists and extremists”, the former UKIP leader claimed he had “done more to drive the far right out of British politics than anybody else alive” – claiming he took on the British Nationalist Party (BNP) a decade ago.

He also appeared to throw his predecessor Richard Tice under the bus when read racist and xenophobic comments made by Reform candidates, saying he “inherited a start up party” and has “no idea” why the people who said those things had been selected.

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The other candidates in Clacton are:

  • Jovan Owusu-Nepaul, Labour;
  • Matthew Bensilum, Liberal Democrat;
  • Craig Jamieson, Climate Party;
  • Tony Mack, Independent;
  • Natasha Osben, Green Party;
  • Tasos Papanastasiou, Heritage Party;
  • Andrew Pemberton, UK Independence Party;
  • Giles Watling, Conservative.

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SEC sues Consensys over MetaMask’s brokerage, staking services

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SEC sues Consensys over MetaMask’s brokerage, staking services

The U.S. SEC claims Consensys has been operating as an unregistered broker through MetaMask.

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