UK Government Shelves £110m Post-Brexit Trade Border Initiative
The UK government has officially shelved a £110 million project designed to streamline trade border processes in the aftermath of Brexit, following significant delays and escalating costs. This initiative, known as the single trade window (STW), was intended to create a unified digital platform for traders to submit all necessary import and export documentation, thereby reducing administrative burdens and friction at borders.
Background and Promises
Launched by the last Conservative government in 2020, the STW was part of a broader pledge to establish the world's most effective border by 2025. This ambitious plan aimed to overhaul the UK's trade system following its departure from the European Union, with contracts awarded to consulting firm Deloitte and technology giant IBM to develop the platform.
Pause and Closure
However, the project was paused in 2024 due to concerns over implementation costs. According to freedom of information responses obtained by the thinktank TaxWatch and reported by the Financial Times, no funds have been allocated to the STW since January of that year. The Treasury has indicated that the programme was brought to an early closure, effectively halting its progress.
Mike Lewis, director of TaxWatch, criticised the situation, stating: For all intents and purposes the single trade window has been cancelled without HMRC or Deloitte and IBM having delivered anything after spending over £110m on it. But neither HMRC nor ministers appear to wish to admit this.
Government Response and Ongoing Development
In response, the government has clarified that while the delivery of the STW has been paused for the 2025-26 financial year, policy development continues. A trade strategy document published last year reaffirmed the government's commitment to minimising administrative burdens for businesses trading internationally, though no definitive timeline for implementation has been provided.
A government spokesperson emphasised: We remain committed to delivering a single trade window, recognising its potential benefits to trade, as set out in the trade strategy published in June last year. Policy development is ongoing and focused on designing a service that delivers genuine value to businesses and strengthens the UK's border system.
Broader Context and Impact
This development occurs nearly a decade after the 2016 Brexit referendum. Despite tariff-free trade agreements negotiated under Boris Johnson's government, UK-EU trade remains constrained by various rules and restrictions, falling short of the previous single market and customs union membership. Goods exports have been particularly hard-hit, with volumes to the EU dropping by 18% in real terms compared to 2019 levels by 2024.
The National Audit Office estimates that the government has spent at least £4.7 billion on post-Brexit border controls in 2024 alone, highlighting the ongoing challenges and costs associated with border management. Deloitte has declined to comment on the project's shelving, while IBM did not respond to requests for comment.
