Logistics UK has raised concerns about the Government’s proposed Retained EU Law (REUL) Bill, outlining the risks its adoption will pose to UK businesses and the nation’s supply chain.
In a letter to PM Rishi Sunak, Logistics UK’s chief executive David Wells OBE has highlighted the industry’s concerns about the Bill, which is currently making its way through Parliament and is due to be implemented from December 2023.
Wells highlighted the cost and potential scale of the changes which will impact businesses trading across the UK’s borders, the risk of creating trade barriers which could impede the movement of goods and slow the UK’s economy, and the risk of unintended consequences, caused by a lack of oversight thanks to the pace at which regulatory changes could be applied.
He said: “Britain’s logistics businesses keep the UK trading and are driving the country’s economic recovery by reinforcing existing trading relationships and establishing new ones. But with at least 4,000 EU laws across around 500 policy areas affected by the REUL Bill, the impact of its implementation will be significant.
“Our members operate on very narrow margins, and have already absorbed significant costs as a result of the UK’s departure from the EU. Coupled with the ongoing uncertainty over what legislation will be retained, removed or improved, and how those changes will need to be implemented and when, it is clear that logistics businesses are increasingly concerned about the scale of the task ahead.”
“The lack of clarity over what will need to change, and by when, is causing great uncertainty across our industry, a sector which is at the heart of all trading relationships both domestically and internationally.”
Wells went onto say that implementing new trading processes and adapting to new regulatory conditions will take time and money.
He continued: “The lack of clarity over what will need to change, and by when, is causing great uncertainty across our industry, a sector which is at the heart of all trading relationships both domestically and internationally.
“Trade benefits from smooth border processes, simple procedures and fewer regulatory differences for logistics workers or vehicles. Any changes need to deliver clear benefits, manage the scale of change effectively and recognise the attendant costs and time required to implement and bed down new systems and processes – assuming the necessary IT solutions are available.”
Wells is keen for the Government to take a considered, measurable approach to the process, so that both industry relationships and overseas trading connections can be protected.
He added: “It is vital that the approach taken is careful and considered and that we do not rush through changes which duplicate effort or disadvantage our sector, and the UK’s consumers. We need a clear timeline for the changes which will be required to protect the UK’s highly interconnected supply chain, while minimising unnecessary change and delivering clear, positive benefits to UK PLC.”
