Import Controls: Inflation

(asked on 22nd October 2024) - View Source

Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government what steps they are taking to review the inflationary impact of the Border Target Operating Model.


Answered by
Baroness Hayman of Ullock Portrait
Baroness Hayman of Ullock
Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
This question was answered on 4th November 2024

Defra continues to monitor and review the impacts of new controls introduced under the Border Target Operating Model (BTOM). We will work closely with industry, trade partners and enforcement agencies to minimise costs to trade and disruption, while continuing to protect our biosecurity.

The Government’s modelling of the inflationary impact of the BTOM uses a peer-reviewed econometric model, including the impacts of non-tariff measures related to checks such as the cost of Export Health Certificates and port fees, and upstream impacts such as administrative processing time, training, certificates of origin and security deposits or guarantees when moving agricultural goods under licence.

Analysis has indicated the BTOM policies would lead to an approximate increase in consumer food price inflation of less than 0.2 percentage points over a three-year period

An outbreak of a major disease could have a much more significant impact. The 2001 outbreak of Foot and Mouth disease cost £12.8 billion in 2022 prices, £4.8 billion of which was cost to Government and £8 billion cost to the private sector.

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