Capital Economy, Business and Finance
UK ports have written to the government demanding compensation if a deal is struck to lower trade barriers with the EU, after they spent millions building post-Brexit border control facilities. Labour has pledged an EU veterinary deal to minimise “unnecessary border checks” and port operators are arguing they shouldn’t incur costs for “changing political winds”. More than 40 ports applied to the previous government’s £200 million ports fund, but the UK Major Ports Group, a trade association, argues they still faced a funding gap of £100 million to build high-tech facilities that have been hardly used. The calls for compensation come at the same time as Rachel Reeves is expected to announce a £20 billion “black hole” in the public finances, which the IFS says is roughly equivalent to cuts to National Insurance introduced this year. Public sector pay rises could cost around £8 billion more than planned, and the chancellor now faces tough choices to raise tax and cut back on other significant infrastructure projects, including hospitals and roads.
