UK government invests £705 million to fund new border infrastructure and management

23 Jul 2020

The transition period for the UK out of the EU will end on January 1, 2021, and with it will come the end of a the single market and customs union. To prepare for the exit and maintain trading relations with the EU, the UK government is investing £705 million (US$889 million) into new infrastructure, jobs and technology for its border.

Investment funding will complement the £84 million (US$106 million) in grant funding that the government has already funneled into this transition project to ensure that there is sufficient customs capacity come January.

UK government invests £705 million to fund new border infrastructure and management

This new funding will be broken out between various divisions in order to increase infrastructure and labor capacity in several sectors that are integral to keeping trade relations humming along. According to the UK government website, £235 million (US$296 million) will go toward staffing and IT, including more Border Force personnel and equipment; new data infrastructure; and systems to reduce manual customs checks in favor of more reliance on technology. The other £470 million will go toward building infrastructure such as border control posts.

“We are taking back control of our borders, and leaving the single market and the customs union at the end of this year bringing both changes and significant opportunities for which we all need to prepare. That is why we are announcing this major package of investment,” says Chancellor of the Duchy of Lancaster Michael Gove.

Coming up with a plan to continue trade without bottlenecks will be important to keep the international supply chain going as there has been widespread concern surrounding the potential delays at UK ports due to lack of space and processing capacity for shipments. Avoiding delays becomes particularly for trade with the EU as it is the largest trading partner of the UK. According to FoodDrinkEurope, the 2018 trade value of food and drink with the EU was €47.5 billion (US$51.5 billion).

Regardless of whether this infrastructure is implemented or if the UK reaches an agreement with the European Union on future trade relations, the UK will leave the EU on Dec. 31.

Related tags

Market News Certification

Related news

Blue Apron co-founder raises $10M to breed a superior chicken

Blue Apron co-founder raises $10M to breed a superior chicken

31 Jul 2020

For decades the American poultry breeding business has been dominated by Cobb and Aviagen. However, Cook Ventures, a new breeder focused on slow-growth, heirloom chickens, may give its two major competitors a run for their money.

Read more 
Following second quarter earnings report, Coca-Cola looks to drop more brands

Following second quarter earnings report, Coca-Cola looks to drop more brands

30 Jul 2020

After Coca-Cola announced the discontinuation of its Odwalla juice brand earlier this month, Coke's CEO James Quincey said during the company's second quarter earnings call that more of the CPG giant’s brands will be on the chopping block in the near f...

Read more 
Study: 2% of Brazil’s soybean farms are responsible for 62% of deforestation

Study: 2% of Brazil’s soybean farms are responsible for 62% of deforestation

29 Jul 2020

A new study published in the Journal of Science found that 20% of soy and 17% of beef imports into European from Brazil may be contaminated with illegal deforestation. Although a substantial figure, this deforestation is linked to a small number of far...

Read more 
Cyclospora cases plague U.S. lettuce industry

Cyclospora cases plague U.S. lettuce industry

27 Jul 2020

On June 20, retailers in nearly all the Midwestern states in the U.S. recalled bagged garden salad products that were linked to an outbreak of Cyclospora infections. As of July 22, the Centers for Disease Control and Prevention reported 641 cases acros...

Read more 
Anheuser-Busch releases Busch Light Apple beer

Anheuser-Busch releases Busch Light Apple beer

24 Jul 2020

It’s not yet fall, but Anheuser-Busch launched an apple-flavored lager under its Busch Light line. This is the first time in 65 years that the Busch Beer brand has released a flavored beer product, and it will be available for a limited time in select ...

Read more 
Pasture-raised egg producer Vital Farms files for IPO

Pasture-raised egg producer Vital Farms files for IPO

22 Jul 2020

Pasture-raised egg company Vital Farms filed with the U.S. Securities and Exchange Commission (SEC) to raise up to $100 million in an initial public offering. The company plans to use the symbol VITL on the NASDAQ New York stock exchange.

Read more 
Analysts report Monster Beverage likely to enter hard seltzer segment

Analysts report Monster Beverage likely to enter hard seltzer segment

21 Jul 2020

Stifel analyst Mark Astrachan released a report stating that he expects energy drink giant Monster Beverage to enter both the hard seltzer space and the non-alcoholic sparkling water category.

Read more 
PepsiCo Egypt CEO feels bullish about regional growth: ‘The opportunities are huge’

PepsiCo Egypt CEO feels bullish about regional growth: ‘The opportunities are huge’

20 Jul 2020

PepsiCo recently announced a US$100m capital investments in Egypt, and its confidence in the country’s growth potential is unshaken even by coronavirus, says the CEO of PepsiCo Egypt.

Read more 
Uber agrees to buy Postmates for $2.65 billion

Uber agrees to buy Postmates for $2.65 billion

17 Jul 2020

Uber will expand its food delivery business with a $2.65 billion acquisition of the Postmates delivery service. The financial transaction will be done in an all-stock deal, putting the pressure on both companies to continue delivering growth and become...

Read more 
Danone rejects claim that its infant formulas contain toxic substances

Danone rejects claim that its infant formulas contain toxic substances

15 Jul 2020

After industry watchdog group Foodwatch released a report last October that aromatic mineral oils (MOAH) were found in 16 infant formula brands, including Danone’s Gallia Galliagest Lactose-free Growing-up product, the French manufacturing giant recent...

Read more