Max-Fac customs model could cost UK business £20bn

Labour Party

The customs model favoured by Brexit Secretary, David Davis, and other senior Government ministers could cost business as much as £20bn a year the head of HMRC has warned.

The Government department said, during a hearing at the Treasury Select Committee, that the so called “Max-Fac” model-which relies on technology to carry out border checks-is a significantly more expensive option than the alternative.

It is yet another blow for the divided Government, and perhaps in an attempt to ‘shrug some embarrassment, senior cabinet figures claim they were never briefed by HMRC that the cost could be so high.

Meanwhile Theresa May’s partnership model, the alternative model, has come under fire from within her own Government and those such as Johnson, Gove and Rees-Mogg have reportedly applied pressure on the Prime Minister to press ahead with the Max-Fac option instead. And far from denying the £20bn claim Downing Street said it had asked for more work to be done on the various customs models. In other words, the Government isn’t certain about which model it should propose.

Either way Jon Thompson advised that it would take around “three to five years to begin implementing the UK’s new customs arrangements, depending on which of the two options were decided upon by the government.”

It is yet another example which reveals the Government is lacking credible evidence for it to make any decisive decisions relating to how it should proceed on this matter. And despite explicit warnings from a senior civil servant, some senior cabinet members maintain that the “Max-Fac” model, which will be prohibitively expensive for many businesses and is therefore hardly viable, is still favoured.

Honeyball’s weekly round-up

Labour Party

The general election campaign is now in full swing and yesterday Labour announced plans to double the number of childcare places provided at Sure Start centres to more than 118,000.

The shadow education secretary Tristram Hunt promised to ‘save’ the Sure Start scheme. This would reverse a decision by the government in 2010 when they were freed from previous requirements to provide childcare, meaning that hundreds of the centres face the threat of closure and have had their funding cut. Indeed, Labour revealed that hundreds of centres were forced to close and others have reduced services as a result of the cuts.

In addition there are 720 fewer Sure Start centres than in 2010 and if it continues to fall at the current rate by the end of the next parliament, Labour warns that 38,000 fewer places will be available by the end of the next parliament.

Last week marked the International Day of Zero Tolerance on FGM (Female Genital Mutilation). The theme for day was “Mobilisation and Involvement of Health Personnel to Accelerate Zero Tolerance to Female Genital Mutilation”. Essentially this means stressing the importance health care professionals play in fighting this terrible and barbaric crime.

They have a duty to adopt and promote a zero tolerance attitude to FGM. This is of course just one part of the strategy. Urgent, but well thought out action has to be taken to stop the cycle being promoted from generation to generation, something Tanya Barron, chief executive of Plan UK has written about and stated before.

With the dedicated effort of all stakeholders, charities, governments, health care professionals and prosecutors the cycle can be broken. There is some hope, work carried out by charities such as Plan UK, have resulted in 60 communities declaring themselves free of FGM.

An investigation carried out by the BBC’s Panorama which will be broadcast tonight has found that the UK’s biggest bank, HSBC, helped and allowed its richest customers to dodge paying tax by allowing them to set up secret accounts in Switzerland.
HSBC, the UK’s biggest bank, helped rich customers to dodge paying tax by allowing them to set up secret accounts in Switzerland, according to a report last night. Following the investigation some £135m of unpaid tax and penalties have been handed over by those British citizens involved. You can see the film on BBC 1 tonight.  More exclusive details have been revealed on the front page of today’s Guardian.