With the Brexit deadline approaching, the U.K. will provide £16 million in grants to help companies train staff regarding customs declarations and to help businesses that assist others in cross-border trading to invest in IT.
In August Chancellor of the Exchequer Sajid Javid allocated £2.1 billion for various government departments and functions in preparation for a no-deal Brexit. Of that amount, approximately £1.1 billion was immediately allocated to help get new border and customs operations ready (£344 million); ensure continuity of vital medicines and medical products, including through freight capacity, warehousing, and stockpiling (£434 million); promote and support businesses (£108 million); and improve public communications (£138 million). The remaining £1 billion will be made available as needed.
“More than 3,000 agents have already been trained as part of an £8 million investment earlier this year, which has also been used to develop new online learning products for customs staff, such as an electronic learning package and a new U.K. Customs Academy, launched on 12 August," HM Revenue & Customs and HM Treasury said in a joint statement issued September 3. "This . . . wave of government grants launching today will go further, with the additional £16 million to be invested to help ensure businesses have all the support they need to get ready for Brexit.”
Companies will be able to apply for the full cost of training within the limits set out in guidance updated by HMRC September 3.
“Britain thrives proudly as an open, welcoming, free enterprise and global trading nation. The Spending Round will include new funding to bolster our leading role on the world stage and seize the opportunities of Brexit. Look out for more on Wednesday,” Javid tweeted September 1.
PwC will administer the grants. A recipient company must provide, within two months of receipt of a grant offer letter, documentation showing the amounts spent on IT improvements or customs training. The grant will be administered approximately 30 days later, according to the HMRC guidance.
The guidance clarified that 100 percent of the cost of training will be covered by the grant, with varying limitations depending on where the course was obtained. IT improvement grants will be granted in amounts up to £200,000.
“Brexit takes place on 31 October and we urge all businesses to make the necessary preparations to be fully ready. The government has doubled the support available so that thousands more customs experts are on hand to help businesses on and after Brexit day,” Financial Secretary Jesse Norman said in the September 3 announcement.
The announcement was issued the same day members of Parliament returned to the House of Commons after the summer recess. MPs were infuriated by Prime Minister Boris Johnson's plan to suspend Parliament by September 12, weeks ahead of the October 31 deadline for a no-deal Brexit, and they plan to introduce legislation to ensure that a deal is still on the table.