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A new £24m border control post may have to be demolished because repeated changes to post-Brexit border arrangements have left it commercially unviable.

The facility at Portsmouth International Port is due to begin physical checks on food and plant imports from the EU at the end of next month, but changes to border protocols since it was built mean half of the building will never be used.

Built with a £17m central government grant and £7m from Portsmouth City Council, which owns the port, it is designed to carry out checks on up to 80 truck loads of produce a day. The port now expects to process only four or five daily.

As a consequence, half of the 14 loading bays will never be used, and annual running costs of £800,000 a year will not be covered by the fees charged to importers for carrying out checks.

Portsmouth is not alone, with ports across the country puzzling over how to make the over-sized, over-specified buildings commissioned by the government pay for themselves with far less traffic.

The Department for Environment, Food and Rural Affairs says it spent £200m part-funding new facilities to cope with post-Brexit border controls at 41 ports. It acknowledges that fewer checks will now be required and says ports are free to use spare capacity as they wish.

The problem in Portsmouth is that the facility, built for a very specific purpose inside a secure area, has no obvious commercial use, so the port is considering building a new, smaller facility, and decommissioning or even demolishing the existing building to make space for a commercially viable project.

A brand new £24m border control post in Portsmouth may have to be demolished because repeated changes to post-Brexit border arrangements have left it commercially unviable.
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The new border control post in Portsmouth

A brand new £24m border control post in Portsmouth may have to be demolished because repeated changes to post-Brexit border arrangements have left it commercially unviable.

“This was built to a Defra [Department for Environment, Food and Rural Affairs] specification when the border operating model was announced and it’s been mothballed for two years while the checks were delayed,” Mike Sellers, director of Portsmouth International Port and chairman of the British Ports Association, told Sky News.

“Now the border will be operating with far fewer checks, we are going to struggle to cover the running costs of around £800,000 a year.

“So we have to look to the future and work out what strategically is the best way to minimise the impact to the port and to the council.

“I know it sounds ironic, but that could be building another border control post much smaller than this facility, and looking to find commercial ways to get income either through this facility or to demolish it and use the operational land for something else.”

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‘Total and absolute mess’

Port owner Portsmouth City Council meanwhile wants its £7m share of the £24m build cost reimbursed by the government.

“We as a council had to find £7m to help build this facility and now we’re on the fifth change of mind about how much inspection there will be. Half of this building is going to be left empty, idle, unused, and yet it’s costing council taxpayers of Portsmouth a great deal of money,” said councillor Gerald Vernon-Jones, transport lead for the council.

Were the Portsmouth facility to close it could impact the security of UK food imports, as the port is the main alternative route to Dover, providing much-needed resilience to a supply chain heavily reliant on the Short Straits route.

“It’s a total and absolute mess, we have an enormous white elephant here,” Mr Vernon-Jones said.

“If we can’t afford to keep port health people here all day, every day, to do those examinations then everything will have to come through Dover, and that’s enormously risky for this country. If Dover is closed for some reason, industrial action or whatever, then the whole country’s food is at ransom.”

Undated handout photo issued by Portsmouth City Council of the Spinnaker Tower from above. Issue date: Monday August 2, 2021.
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Portsmouth is the UK’s second busiest cross-Channel port

The British Ports Association meanwhile has raised concerns with ministers about the preparedness of the new inspection regime at new border control posts (BCPs), due to be enforced in less than six weeks.

The trade body says ports have still not been told what hours BCPs will be required to open, or how many staff from two state inspection agencies will be required on site.

Crucially, they also do not know how much they will be able to charge importers for inspections because the government has not revealed what price it will levy at the wholly state-owned and run BCP at Sevington in Kent, 20 miles inland from Dover.

Given the dominance of Dover in UK food imports, the so-called common user charge will set the price for the rest of the market, but other ports still have no idea where to set fees.

Defra says it will inform the industry shortly of the fees it has determined following consultation.

The fate of the Portsmouth facility, obsolete before it has even opened, symbolises the delay and indecision around import controls since the Brexit deal came into force in January 2021.

While UK exports to the EU have faced border and customs controls since 1 January 2021, the UK government has delayed similar checks on EU imports five times and changed the control regime.

Read more:
UK ports threaten legal action after spending millions on border control posts
New post-Brexit border controls to cost businesses £330m a year
Post-Brexit checks on goods from EU into UK announced after delay

A brand new £24m border control post in Portsmouth may have to be demolished because repeated changes to post-Brexit border arrangements have left it commercially unviable.

The original July 2021 deadline for physical checks of plant and animal produce was postponed because the BCPs were not ready, and further delays followed, with the government citing the impact on the food supply chain and the cost of living crisis.

In April 2022 the government announced a wholesale revision of its plans for the border, introducing a new risk-based approach that limits checks to certain high and medium-risk food and plant categories.

This was then delayed again, with a staged introduction finally beginning in January, with medium-risk food and plant imports requiring health certificates signed off by vets or plant health inspectors, followed by physical checks from 30 April.

Even with reduced checks on importsm the government’s own analysis suggests border controls will add £330m a year to the cost of trading with the continent and increase food inflation.

A spokesperson for the Department for Environment, Food and Rural Affairs said: “Our border control posts have sufficient capacity and capability, including for temperature controlled consignments, to handle the volume and type of expected checks and the authorities will be working to minimise disruption as these checks are introduced.”

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Chancellor Rachel Reeves refuses to rule out manifesto-breaking tax hikes

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Chancellor Rachel Reeves refuses to rule out manifesto-breaking tax hikes

Rachel Reeves has refused to rule out breaking her manifesto pledge not to raise certain taxes, as she lays the groundwork ahead of the budget later this month.

Asked directly by our political editor Beth Rigby if she stands by her promises not to raise income tax, national insurance or VAT, the chancellor declined to do so.

She told Rigby: “Your viewers can see the challenges that we face, the challenges that are on [sic] a global nature. And they can also see the challenges in the long-term performance of our economy.”

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She went on: “As chancellor, I have to face the world as it is, not the world as I want it to be. And when challenges come our way, the only question is how to respond to them, not whether to respond or not.

“As I respond at the budget on 26 November, my focus will be on getting NHS waiting lists down, getting the cost of living down and also getting the national debt down.”

‘Each of us must do our bit’

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Ms Reeves’s comments to Rigby came after a highly unusual pre-budget speech in Downing Street in which she set out the scale of the international and domestic “challenges” facing the government.

What did Labour promise in their manifesto?

Rachel Reeves has refused to say whether she will hike taxes, but what exactly was her manifesto commitment last year?

She 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.”

She also hinted at tax rises, saying: “If we are to build the future of Britain together, each of us must do our bit for the security of our country and the brightness of its future.”

Despite her promise that last year’s budget – which was the biggest tax-raising fiscal event since 1993 – was a “once in a parliament event,” the chancellor said that in the past year, “the world has thrown even more challenges our way,” pointing to “the continual threat of tariffs” from the United States, inflation that has been “too slow to come down,” “volatile” supply chains leading to higher prices, and the high cost of government borrowing.

She also put the blame squarely on previous Tory governments, accusing them of “years of economic mismanagement” that has “limited our country’s potential,” and said past administrations prioritised “political convenience” over “economic imperative”.

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Sky’s Beth Rigby said there will be ‘almighty backlash’ after budget, as chancellor failed to rule out breaking tax pledges.

Ms Reeves painted a picture of devastation following the years of austerity in the wake of the financial crisis, “instability and indecision” after that, and then the consequences of what she called “a rushed and ill-conceived Brexit”.

“This isn’t about re-litigating old choices – it’s about being honest with the people, about the consequences that those choices have had,” she said.

‘I don’t expect anyone to be satisfied with growth so far’

The chancellor defended her personal record in office so far, saying interest rates and NHS waiting lists have fallen, while investment in the UK is rising, and added: “Our growth was the fastest in the G7 in the first half of this year. I don’t expect anyone to be satisfied with growth of 1%. I am not, and I know that there is more to do.”

Amid that backdrop, Ms Reeves set out her three priorities for the budget: “Protecting our NHS, reducing our national debt, and improving the cost of living.”

Cutting inflation will also be a key aim in her announcements later this month, and “creating the conditions that [see] interest rate cuts to support economic growth and improve the cost of living”.

She rejected calls from some Labour MPs to relax her fiscal rules, reiterating that they are “ironclad,” and arguing that the national debt – which stands at £2.6trn, or 94% of GDP – must come down in order to reduce the cost of government borrowing and spend less public money on interest payments to invest in “the public services essential to both a decent society and a strong economy”.

She also put them on notice that cuts to welfare remain on the government’s agenda, despite its humiliating U-turn on cuts to personal independence payments for disabled people earlier this year, saying: “There is nothing progressive about refusing to reform a system that is leaving one in eight young people out of education or employment.”

Chancellor Rachel Reeves delivered a highly unusual pre-budget speech from Downing Street. Pic: PA
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Chancellor Rachel Reeves delivered a highly unusual pre-budget speech from Downing Street. Pic: PA

And the chancellor had a few words for her political opponents, saying the Tories’ plan for £47bn in cuts would have “devastating consequences for our public services,” and mocked the Reform UK leadership of Kent County Council for exploring local tax rises instead of cuts, as promised.

Concluding her speech, Ms Reeves vowed not to “repeat those mistakes” of the past by backtracking on investments, and said: “We were elected to break with the cycle of decline, and this government is determined to see that through.”

‘Reeves made all the wrong choices’

In response to her speech, Conservative shadow chancellor Sir Mel Stride wrote on X that “all she’s done is confirm the fears of households and businesses – that tax rises are coming”.

He wrote: “The chancellor claims she fixed the public finances last year. If that was true, she would not be rolling the pitch for more tax rises and broken promises. The reality is, she fiddled the fiscal rules so she could borrow hundreds of billions more.

“Every time the numbers don’t add up, Reeves blames someone else. But this is about choices – and she made all the wrong ones. If Rachel Reeves had the backbone to get control of government spending – including the welfare bill – she wouldn’t need to raise taxes.”

He called for her to resign if she raises taxes.

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