LONDON — It was touted as the “world’s most effective border.”
In December 2020, as the United Kingdom prepared to navigate a new landscape outside the European Union, the then-Tory government outlined plans for a “Single Trade Window” aimed at “radically simplifying traders’ interactions with the border.”
This initiative was supported by a £180 million investment, intended to enable importers and exporters to submit all necessary paperwork digitally in one location, thus saving both time and money.
However, after years of delays and setbacks, the project — originally estimated to cost £330 million in total for delivery — has yet to be realized.
Now, the project may face abandonment altogether.
Four individuals briefed on the plans informed POLITICO that the Cabinet Office is currently consulting on the program’s future as part of its submission to the spending review.
Four options are being considered in Whitehall.
These include the choice to “do nothing” — essentially terminating the project — or to “maintain the current STW asset and conduct discovery work aimed at seeking funding during a future Spending Review.”
Another possibility is a “data centric” approach, which might involve establishing either a “hub” for third-party software developers or a “two-way messaging service” that would allow businesses to share additional data with the government, which, in turn, would enhance messaging to traders.
The final option is to proceed with the full-scale delivery of a single trade window as previously planned.
“The potential savings from the single trade window could amount to a quarter of a billion for businesses,” Liam Byrne, chair of the U.K. parliament’s business and trade committee, told POLITICO. “If this doesn’t materialize, the U.K. will need a bold reset with the EU to reduce the excessive red tape hindering our exporters, especially small businesses.”
Fresh delays
This development follows the government’s announcement last year regarding a pause in the project’s delivery for 2025-26 “in light of financial challenges.”
The delay followed a critical report released in May by the National Audit Office, which warned that the program’s objectives and timelines were “overly optimistic” and underestimated the complexity involved.
The Brexit border regime in Britain — known as the Border Target Operating Model (BTOM) — has already faced numerous delays, with checks on medium-risk fruit and vegetables postponed until July.
The possibility of further delays in the single trade window program is disappointing for many businesses struggling with the complexities and costs of the BTOM.
In its submission to the government’s spending review process, the British Chambers of Commerce emphasized that a single trade window would “generate efficiency savings for traders and the government, while boosting international trade.”
They urged the government to “make a decision in principle to proceed with this program, outline a timeline for delivery of the STW, and support it with multi-year funding throughout this phase of the spending review.”
One source familiar with the plans, who requested anonymity to speak candidly, stated that establishing a single trade window is “essential for creating a world-class digital border from a business user perspective.”
“To further delay or not pursue this lacks recognition of the impact of how the BTOM and cross-border trade is functioning — or not — for many businesses,” they added.
Conservative peer Lucy Neville-Rolfe, the former Cabinet Office minister overseeing the initiative, expressed her disappointment to POLITICO: “This sounds very disappointing.”
“I invested considerable effort into the single trade window because it represents a significant opportunity for businesses at the border. It employs leading technology to eliminate duplication and complicated processes, expediting the flow of goods both into and out of the U.K., including trade with third countries and goods in transit.”
“We are discussing potential benefits amounting to hundreds of millions for businesses, trade, and growth, which the government had previously budgeted for.”
Costs rack up
A Freedom of Information Request submitted by POLITICO indicates that HM Revenue and Customs has spent at least £105.18 million on the plans thus far. This includes £25.8 million in 2022-23, £44.81 million in 2023-24, and £34.54 million in 2024-25, excluding spending in February and March of this year.
In its response, HMRC noted that during the financial years 2020-21 and 2021-22, the program was under the Cabinet Office’s Future Borders Programme. The exact expenditure by the Cabinet Office on the project remains unclear.
In a recent debate, Financial Secretary to the Treasury Spencer Livermore informed peers that the government still maintains a “long-term intention to deliver a single trade window.”
“Minimizing administrative burdens and reducing trade frictions continues to be a priority for this government, as businesses benefit from trade,” he stated. “We will consider how the single trade window can contribute to this, and will provide an update in the next phase of the Spending Review.”
A government spokesperson commented: “We do not comment on speculation ahead of the Spring Forecast.”
