HMRC ‘assessing’ £200m digital Brexit system where advisors net over half the budget

HM Revenue and Customs (HMRC) has said it is “assessing” the impact of its decision to halt the huge £198 million project to create a digital commerce platform. Called the Single Trade Window, it was envisioned under the Conservatives as a technological answer to post-Brexit import and export problems at the border.

The digital platform would have created a single place for traders to upload the proper documentation to transport their goods across UK borders, where currently many have to send the information off to several different agencies before participating in the British economy. But in late November, the government decided to put the Brexit project on ice.

Part of the concerns were a £100m deal signed by HMRC last year with ‘Big Four’ consultancy firm Deloitte and tech partner IBM to deliver the digital post-Brexit trade platform by 2027. This huge consultancy payment represents over half of the project’s total £195m budget.

Labour’s Financial Secretary to the Treasury, Lord Livermore, has now admitted that pausing the project for at least the next two years could pose an issue to the massive contracts signed with Deloitte and IBM. Responding to a question in parliament, he said: “Following the decision to pause work on the Single Trade Window, HMRC is working with its delivery partner to assess the impact of this decision on existing contracts, including an assessment of delivery to date.”

However, the Labour Treasury official added: “There is no formal dispute resolution process running,” regarding the outstanding £100m consultancy contract.

The UK Warehousing Association has slammed Labour’s decision to halt the Single Trade Window, calling it a “key part of the UK’s post-Brexit border strategy.” The trade body continued, saying it did “little to alleviate the uncertainty facing many businesses involved throughout the UK’s critical supply chains.”

In April 2023, then-Prime Minister Rishi Sunak‘s government assigned the project an “amber” rating, Public Technology reports. This rating indicates that: “Successful delivery of the project to time, cost and quality appears feasible but significant issues already exist requiring management attention.

“These appear resolvable at this stage and, if addressed promptly, should not present a cost [or] schedule overrun.”

However, with Labour facing a steep financial challenge, it appears the key post-Brexit trade measure might be in trouble. James Murray, the exchequer secretary to the Treasury, said: “The government is considering its future plans for the border and how best to meet the needs of its users.

“In the context of financial challenges, the government is pausing delivery of the UK Single Trade Window in 2025/26.

“As part of its efforts to support businesses trading across the UK border, the government will consider the role of the Single Trade Window and will provide an update as part of the next phase of the Spending Review, reporting in late Spring 2025.”