UK Trade with EU

Treasury written question – answered on 21st July 2020.

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Photo of Nick Smith Nick Smith Labour, Blaenau Gwent

To ask the Chancellor of the Exchequer, with reference to the Minister for the Cabinet Office's oral statement of 13 July 2020, Official Report, column 1268, on EU Exit: End of Transition Period, how much has been spent on developing HMRC border trading systems as at 16 July 2020; and what estimate his Department has made of the future cost for that development.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

HMRC’s spending on EU Exit and Transition in 2017/18 was £46.8m, and in 2018/19 was £261.7m.

HMRC’s spending in 2019/20 will be confirmed with the publication of their annual accounts in October.

Funding for the systems to meet the requirements of the end of the transition period is included within HMRC’s EU transition budget allocation.

Previous year figures include the Border and Protocol Delivery Group (BPDG), which was located with HMRC.

HMRC funding for 2020/21, excluding BPDG who have now moved to the Cabinet Office, consists of the £357m at Main Estimate with the addition of £50m for intermediaries support, £69m agreed by HMT, and £185m announced by the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office, for border readiness. HMRC remain in regular contact with HMT to ensure that HMRC are resourced sufficiently to carry out requirements.

Future costs will be subject to the forthcoming comprehensive spending review.

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