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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.”

‘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.

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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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Sky News joins police raid on Turkish barbershop – and all is not as it appeared

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Sky News joins police raid on Turkish barbershop - and all is not as it appeared

In a small town in Suffolk, a team of police officers walk into a Turkish barbershop.

It’s clean and brightly painted, the local football team’s shirt displayed on one wall. Two young men, awaiting customers, hair and beards immaculate, tell officers they commute to work here from London.

Step through the door at the back of the shop and things look very different.

In a dingy stairwell, a bed has been crammed on to a landing, and a sofa just big enough to sleep on is squeezed under the stairs. The floor and steps are covered with empty pizza boxes, food containers and drink bottles. There’s a pair of socks on the floor and a T-shirt on the bed. An unopened prescription sits on a table.

At least one person is clearly living here, but possibly not by choice.

“This could be linked to exploitation, this could be linked to some forms of modern slavery,” says John French, the modern slavery vulnerability advisor for Suffolk Constabulary.

“You have to ask yourself when you come across this sort of situation, why would someone want to live in these sorts of conditions?”

John French speaks to Paul Kelso
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John French speaks to Paul Kelso

Behind a second door, this one padlocked, is a second room. This one cleaner, but clearly not safe.

Phrases in Turkish and English have been scribbled on post-it notes stuck to the wall and officers find a driving licence with a local address.

“Judging by the state of the room, this could be an ‘Alpha’ living in here,” says Mr French.

“An ‘Alpha’ is someone who’s previously been exploited,” he explains. “They have been given a little bit of trust and act like a kind of supervisor. They are very important to us, because we want to get them away from others before they can influence them.”

A brand-new Audi SUV is parked at the back.

What’s going on here?

We are in Haverhill, a small town in Suffolk bypassed by the rail network and the prosperity enjoyed elsewhere in the county, its central street bearing the familiar markers of town-centre decline.

There’s a Costa, a Boots, a branch of Peacocks, and several pubs and cafes, but they’re punctuated by “cash intensive” businesses including barbers, vape stores and takeaways, and several vacant premises that stand out like missing teeth.

It’s the cash intensive businesses that have brought the attention of police, these local raids part of the National Crime Agency’s (NCA’s) Operation Machinize, targeting money laundering, criminality and immigration offences hidden in plain sight on high streets across England.

There are 17 premises of interest in Haverhill alone, among more than 2,500 sites visited since the start of October, resulting in 924 arrests and more than £2.7m of contraband seized.

In a single block of five shops on the High Street, four are raided. A sweet shop yields a haul of smuggled cigarettes stashed in food delivery boxes.

In the Indian restaurant three doors down a young Asian man is interviewed via an interpreter dialling in on an officer’s phone. They establish his student visa has been revoked, and he has had a claim for asylum rejected.

The aim is to disrupt criminality using any means possible, be they criminal or civil. Criminal or not, the living conditions at the barbers are likely to fall foul of planning and building regulations enforceable with penalties including fines and closure, so officials from the council and fire safety are on hand.

Trading Standards are here to handle counterfeit goods seizures, and immigration officers are on hand to check the status of those questioned, pursuing anyone without permission to be in the UK.

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‘A full spectrum of criminality’

Sal Melki, the NCA’s deputy director of financial crime, explains why the agency is targeting apparently small operations.

“We’re finding everything from the laundering of millions of pounds into high value goods like really expensive watches, through to the illicit trade of tobacco and vapes, and people that have been trafficked into the country working in modern slavery conditions. We’re seeing a full spectrum of criminality.

“We want to disrupt them with seizures, arrests, and prosecutions and make sure bad businesses are replaced with successful, thriving businesses that make us all feel safer and more prosperous.”

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The last visit is to a small supermarket. Through the back door is another hidden bedroom, this one not much larger than a broom cupboard, with a makeshift bed made from a sheet of plywood and a duvet.

The man behind the counter, who says he’s from Brazil via Pakistan, claims not to live in the shop, but his luggage is in a storeroom. He’s handcuffed and questioned by immigration officers, and admits working illegally on a visitor visa.

“If he is proven to be working illegally he’ll be taken to a detention centre and administratively removed,” an immigration officer tells me. “That’s not the same as deportation, the media always gets that wrong. He’ll be given the chance to book his own ticket, and if not, he’ll be removed.”

Shortly afterwards he’s put in a police car, his large red suitcase squeezed onto the front seat, and driven away.

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Post Office agrees fresh extension to scandal-hit Fujitsu Horizon deal

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Post Office agrees fresh extension to scandal-hit Fujitsu Horizon deal

The Post Office has agreed a further extension to its scandal-hit software deal with the Japanese company Fujitsu as it plots a move to a rival supplier in the next couple of years.

Sky News has learnt that the Post Office, which is owned by the government, is to pay another £41m to Fujitsu for the use of the Horizon system from next April until 31 March 2027.

The move comes as Post Office bosses prepare to sever the company’s partnership with Fujitsu, which is under pressure to pay hundreds of millions of pounds for its part in the scandal.

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Hundreds of sub-postmasters were wrongfully imprisoned for fraud and theft because of flaws with Fujitsu’s software, which it subsequently emerged were suspected by executives involved in its management.

Last week, Sky News revealed that Sir Alan Bates, who led efforts to seek justice for the victims of what has been dubbed Britain’s biggest miscarriage of justice, had settled his multimillion pound compensation claim with the government.

Sir Alan received a seven-figure sum, which one source said may have amounted to between £4m and £5m.

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In a statement issued in response to an enquiry from Sky News, a Post Office spokesperson said: “The Post Office has agreed with Fujitsu a one-year bridging extension to the Horizon contract for the period 1 April 2026 to 31 March 2027.

“We are committed to moving away from Fujitsu and off the Horizon system as soon as possible.

“We are bringing in a different supplier to take over Horizon whilst a new system is developed, and this process is well underway.

“We expect to award a contract for a new supplier to manage Horizon by July 2026, according to current timelines.”

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Will Post Office victims be cleared?

Fujitsu executives have acknowledged that the company has a “moral obligation” to contribute financially as a result of the Horizon scandal, but has yet to agree a final figure with the government.

It is said to be unlikely to do so until the conclusion of Sir Wyn Williams’ public inquiry.

The Department for Business and Trade has been contacted for comment.

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Diageo taps former Tesco boss ‘Drastic Dave’ Lewis to lead fightback

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Diageo taps former Tesco boss 'Drastic Dave' Lewis to lead fightback

Former Tesco boss Sir Dave Lewis is to become the new chief executive of Diageo, the struggling FTSE 100 drinks giant.

The world’s largest spirits maker, which counts Guinness and Johnnie Walker whisky among its stable of brands, said he would assume the role in January.

The search for a new boss began in July when Debra Crew was effectively ousted after two years in charge.

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The company’s share price fell 40% during her tenure as the industry grappled a drastic decline in the number of people drinking at home following the COVID pandemic and, more recently, the US trade war.

A planned fightback by Ms Crew was seen by investors as failing to go far enough.

Sir Dave led a six-year turnaround of Tesco, the UK’s biggest retailer, from 2014.

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He earned the nickname ‘Drastic Dave’ in his previous role at Unilever, the consumer goods giant, where he was credited with achieving similar success through cost-cutting and targeted marketing.

Diageo’s market positions have fared better than rivals during the downturn but its shares are still hovering around lows not seen for a decade.

Debra Crew was appointed chief executive after the sudden death of Sir Ivan Menezes in 2023. Pic: Diageo
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Debra Crew was appointed chief executive after the sudden death of Sir Ivan Menezes in 2023. Pic: Diageo

Only last week, the company downgraded its sales and profit outlook for next year.

Diageo chair John Manzoni told investors: “The Board unanimously felt that Dave has both the extensive CEO experience, and the proven leadership skills in building and marketing world-leading brands, that is right for Diageo at this time.”

Sir Dave said of the task facing him: “Diageo is a world leading business with a portfolio of very strong brands, and I am delighted to be joining the team.

“The market faces some headwinds but there are also significant opportunities. I look forward to working with the team to face these challenges and realise some of the opportunities in a way which creates shareholder value.”

Diageo shares were 7% up on news of the appointment.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, responded: “Lewis brings deep experience in consumer brands from his time leading Tesco and decades at Unilever, though he lacks direct exposure to the spirits industry.

“Investors may welcome his strong marketing pedigree, but any major strategic reset will take time, leaving near-term focus on navigating tough trading conditions.”

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