Connect with us

Published

on

The UK and the EU are set to thrash out their differences over the implementation of the Northern Ireland Protocol.

Brexit minister Lord Frost and Maros Sefcovic, the European Commission vice president, will meet on Wednesday after the latter suggested the EU is finding it hard to trust the UK following its departure from the bloc

Mr Sefcovic said there have been “numerous and fundamental gaps in the UK’s implementation” of the two sides’ trade deal and that the EU will act “firmly” if the UK does not agree on deadlines for complying with its obligations.

In turn, Environment Secretary George Eustice claimed the Northern Ireland Protocol, in the way the EU wants to implement it, would make it impossible for UK producers to sell British sausages to Northern Ireland.

Sky News has taken a closer look at the issues.

Please use Chrome browser for a more accessible video player

Many suppliers in Britain ‘have chosen to stop supplying to Northern Ireland’

What is the Northern Ireland Protocol?

It is a crucial part of the Internal Markets Bill, which was drawn up to ensure trade between all four UK nations remains barrier-free after the Brexit transition period ended on 31 December 2020.

More on Brexit

The Northern Ireland Protocol was put in place to avoid the introduction of a hard border between Ireland and Northern Ireland in the event of a no-deal Brexit.

It states that Northern Ireland will remain part of the UK’s customs territory – so if the UK signs a free trade deal with another country, Northern Irish goods would be included.

However, Northern Ireland will have to stick to some EU rules to allow goods to move freely into the Republic.

Goods moving from the rest of the UK to Northern Ireland will not be subject to a tariff unless they are “at risk” of being moved into the EU afterwards.

Mr Eustice said in 2020 there would need to be “some checks on some goods” and “some customs processes but not customs checks” at the border with the Republic.

Goods coming from Northern Ireland to Great Britain can have “unfettered” access, the Internal Market Bill says. This means goods sold in Northern Ireland will be accepted everywhere else in the UK, but the reverse may not be true.

A sign on a lamppost that reads 'Ulster is British - no internal UK Border - Unionists against NI Protocol', opposite the Department of Agriculture, Environment and Rural Affairs (DAERA) Redlands site. It will be used to inspect animal products travelling from Great Britain into Northern Ireland after the post-Brexit transition period at the end of the year.
Image:
The Northern Ireland Protocol was meant to prevent a physical border on the island of Ireland

What has happened since the Brexit transition period ended?

Products from Great Britain entering Northern Ireland have had to undergo EU import procedures at the ports.

An Irish Sea border has effectively been imposed in an effort to prevent a physical border between Ireland and Northern Ireland.

This has resulted in delays and sometimes sparse supermarket shelves.

A sign is seen with a message against the Brexit border checks in relation to the Northern Ireland protocol at the harbour in Larne, Northern Ireland February 12, 2021. REUTERS/Clodagh Kilcoyne
Image:
Checks imposed at the port in Larne, Northern Ireland, have not been popular

What are the UK and EU disagreeing over?

Under the protocol, a ban will come into force if the UK and EU cannot agree on new regulatory standards to cover the sale of some products after a “grace period” allowed under the agreement.

In March, the UK unilaterally extended the grace period for supermarket goods and parcels for another six months, after it was due to finish at the end of that month.

The EU launched legal action against the UK for extending that grace period.

Graffiti on the A2 outside Carrickfergus in Belfast. The DUP has rejected claims it is whipping up tensions over Irish Sea trade in an effort to get Brexit's contentious Northern Ireland Protocol ditched. Physical inspections on goods entering Northern Ireland from Great Britain, which are required under the protocol, have been suspended amid threats and intimidation of staff. Picture date: Wednesday February 3, 2021.
Image:
The UK promised there would be no sea border

It is understood British ministers are now considering a unilateral extension for chilled meats, including sausages and mince, which is due to end on 30 June.

After the grace period, chilled meats produced in Great Britain will not be allowed to be sold in Northern Ireland as they are not from the EU, which has strict restrictions on food products.

Mr Sefcovic said retaliation by the EU would be so extreme it would ensure the UK “abides by its international law obligations”.

Boris Johnson‘s spokesman said there was “no case whatsoever” for blocking the sale of chilled meats.

Sausages on sale at the butchers at Polhill Farm Shop near Sevenoaks 20/3/2020
Image:
British sausages have been the focus of the latest disagreement

Lord Frost claims the EU has been “inflexible” over the protocol, something the EU rejects.

The EU has said the UK could align with its animal health and food safety rules to remove the need for 80% of the current Irish Sea customs checks.

But the UK has rejected this, as it says it will tie Britain’s hands in trade negotiations with other countries.

The UK has also accused the EU of failing to engage with its own proposals, especially with the issues people in Northern Ireland are facing.

Continue Reading

Politics

Building societies step up protest against Reeves’s cash ISA reforms

Published

on

By

Building societies step up protest against Reeves's cash ISA reforms

Building society chiefs will this week intensify their protests against the chancellor’s plans to cut cash ISA limits by warning that it will push up borrowing costs for homeowners and businesses.

Sky News has obtained the draft of a letter being circulated by the Building Societies Association (BSA) among its members which will demand that Rachel Reeves abandons a proposed move to slash savers’ annual cash ISA allowance from the existing £20,000 threshold.

Money blog: ‘I get paid to taste biscuits’

The draft letter, which is expected to be published this week, warns the chancellor that her decision would deter savers, disrupt Labour’s housebuilding ambitions and potentially present an obstacle to economic growth by triggering higher funding costs.

“Cash ISAs are a cornerstone of personal savings for millions across the UK, helping people from all walks of life to build financial resilience and achieve their savings goals,” the draft letter said.

“Beyond their personal benefits, Cash ISAs play a vital role in the broader economy.

“The funds deposited in these accounts support lending, helping to keep mortgages and loans affordable and accessible.

More on Rachel Reeves

“Cutting Cash ISA limits would make this funding more scarce which would have the knock-on effect of making loans to households and businesses more expensive and harder to come by.

“This would undermine efforts to stimulate economic growth, including the government’s commitment to delivering 1.5 million new homes.

“Cutting the Cash ISA limit would send a discouraging message to savers, who are sensibly trying to plan for the future and undermine a product that has stood the test of time.”

The chancellor is reportedly preparing to announce a review of cash ISA limits as part of her Mansion House speech next week.

While individual building society bosses have come out publicly to express their opposition to the move, the BSA letter is likely to be viewed with concern by Treasury officials.

The Nationwide is by far Britain’s biggest building society, with the likes of the Coventry, Yorkshire and Skipton also ranking among the sector’s largest players.

Read more from Sky News:
Trump tariff deadline extended as new threats issued
What happens to your pension when you die?

In the draft letter, which is likely to be signed by dozens of building society bosses, the BSA said the chancellor’s proposals “would make the whole ISA regime more complex and make it harder for people to transfer money between cash and investments”.

“Restricting Cash ISAs won’t encourage people to invest, as it won’t suddenly change their appetite to take on risk,” it said.

“We know that barriers to investing are primarily behavioural, therefore building confidence and awareness are far more important.”

The BSA called on Ms Reeves to back “a long-term consumer awareness and information campaign to educate people about the benefits of investing, alongside maintaining strong support for saving”.

“We therefore urge you to affirm your support for Cash ISAs by maintaining the current £20,000 limit.

“Preserving this threshold will enable households to continue building financial security while supporting broader economic stability and growth.”

The BSA declined to comment on Monday on the leaked letter, although one source said the final version was subject to revision.

The Treasury has so far refused to comment on its plans.

Continue Reading

Politics

Govt declines to rule out wealth tax after ex-Labour leader Lord Kinnock calls for wealth tax

Published

on

By

Govt declines to rule out wealth tax after ex-Labour leader Lord Kinnock calls for wealth tax

The government has declined to rule out a “wealth tax” after former Labour leader Neil Kinnock called for one to help the UK’s dwindling finances.

Lord Kinnock, who was leader from 1983 to 1992, told Sky News’ Sunday Morning With Trevor Phillips that imposing a 2% tax on assets valued above £10 million would bring in up to £11 billion a year.

Politics latest: Reeves’s tax turmoil deepens

On Monday, Sir Keir Starmer’s spokesperson would not say if the government will or will not bring in a specific tax for the wealthiest.

Asked multiple times if the government will do so, he said: “The government is committed to the wealthiest in society paying their share in tax.

“The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”

He added the government has closed loopholes for non-doms, placed taxes on private jets and said the 1% wealthiest people in the UK pay one third of taxes.

Chancellor Rachel Reeves earlier this year insisted she would not impose a wealth tax in her autumn budget, something she also said in 2023 ahead of Labour winning the election last year.

Asked if her position has changed, Sir Keir’s spokesman referred back to her previous comments and said: “The government position is what I have said it is.”

Please use Chrome browser for a more accessible video player

Welfare: ‘Didn’t get process right’ – PM

The previous day, Lord Kinnock told Sky News: “It’s not going to pay the bills, but that kind of levy does two things.

“One is to secure resources, which is very important in revenues.

“But the second thing it does is to say to the country, ‘we are the government of equity’.

“This is a country which is very substantially fed up with the fact that whatever happens in the world, whatever happens in the UK, the same interests come out on top unscathed all the time while everybody else is paying more for getting services.

“Now, I think that a gesture or a substantial gesture in the direction of equity fairness would make a big difference.”

The son of a coal miner, who became a member of the House of Lords in 2005, the Labour peer said asset values have “gone through the roof” in the past 20 years while economies and incomes have stagnated in real terms.

In reference to Chancellor Rachel Reeves refusing to change her fiscal rules, he said the government is giving the appearance it is “bogged down by their own imposed limitations”, which he said is “not actually the accurate picture”.

A wealth tax would help the government get out of that situation and would be backed by the “great majority of the general public”, he added.

His comments came after a bruising week for Prime Minister Sir Keir Starmer, who had to heavily water down a welfare bill meant to save £5.5bn after dozens of Labour MPs threatened to vote against it.

With those savings lost – and a previous U-turn on cutting winter fuel payments also reducing savings – the chancellor’s £9.9bn fiscal headroom has quickly dwindled.

In a hint of what could come, government minister Stephen Morgan told Wilfred Frost on Sky News Breakfast: “I hold dear the Labour values of making sure those that have the broadest shoulders pay, pay more tax.

“I think that’s absolutely right.”

He added that the government has already put a tax on private jets and on the profits of energy companies.

Continue Reading

Politics

UK sentences 2 men to prison over $2M cold-calling crypto scam

Published

on

By

UK sentences 2 men to prison over M cold-calling crypto scam

UK sentences 2 men to prison over M cold-calling crypto scam

Two men who admitted to running a crypto scheme that defrauded 65 investors have both been sentenced to over five years in prison.

Continue Reading

Trending