/Brexit news – live: UK and EU seek ‘workable solutions’ to NI crisis, as £20m disruption fund announced

Brexit news – live: UK and EU seek ‘workable solutions’ to NI crisis, as £20m disruption fund announced

Michael Gove compares Brexit problems to turbulence on takeoff of an airplane

Cabinet Office minister Michael Gove and European Commission vice president Maros Sefcovic have pledged their full commitment to “proper implementation” of the protocol in Northern Ireland.

Following a “frank but constructive” discussion in London, the top officials are expected to hold a virtual meeting with Northern Irish business leaders next week in an effort to find “workable solutions” to Brexit disruption.

Mr Gove has announced at £20m support fund to help small businesses in the UK adapt to trading difficulties. It comes as food industry chiefs called Brexit an “unmitigated disaster”, as they told MPs new arrangements had caused some firms to shut their doors for good.

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Tory MPs warn Boris Johnson not to ‘backslide’ on school reopening

Boris Johnson and his ministers are discussing long-term plans for social distancing to remain in place until at least the autumn, according to a report in The Times. “The thinking is that social distancing will need to be in place for a long time to come,” said an official.

Tory MPs are not happy about it. Nor are they happy at the latest comments from government advisors on some curbs staying place beyond spring.

Sage’s Prof John Edmunds said social distancing is likely to remain throughout 2021, while face mask wearing in public could be in place “forever”.

He also told ITV’s Peston: “If we opened schools I think the reproduction number would get close to 1 and possibly exceed 1.”

Mark Harper, head of the lockdown-sceptic group of 70 Conservative MPs, said the PM must not “blackslide” on the promise to get pupils back by 8 March. Tory MP Robert Halfon said the date should be “signed in blood”.

<p>Boris Johnson</p>

(Barcroft Media via Getty Images)

Adam Forrest12 February 2021 09:08

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Brexit is ‘unmitigated disaster’, food industry chiefs say

Brexit has been called an “unmitigated disaster” by food industry chiefs, as they told MPs about the impact of new arrangements.

Sector leaders told the trade select committee on trade about the scale of disruption, which already caused some businesses to shut their doors for good.

The Food and Drink Administration’s Ian Wright confirmed that food exports to the EU have declined by 50 to 60 per cent in January. He also warned that we could be 50,000 customs agents short of what is needed when full regulations are enforced.

Fisheries expert Terri Portmann said Brexit had been an “unmitigated disaster” for the sector. “We have already seen seafood businesses who heavily relied upon an export market close their doors – companies that have been around for 30 to 40 years.”

Adam Forrest12 February 2021 08:56

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£20m Brexit fund for disrupted businesses

Cabinet Office minister Michael Gove has announced at £20m support fund to help small businesses in the UK adapt to Brexit disruption.

Firms will be able to apply for up to £2,000 to help pay for new paperwork and deal with other red tape problems.

Gove said: “The government has listened carefully to the issues raised by the business community through the Brexit business taskforce, and that’s why we are bringing forward this financial support to help small businesses adapt to the changes to our trading relationship with the EU.”

(Reuters)

Adam Forrest12 February 2021 08:52

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Starmer urges Sunak to ‘protect’ UK financial sector

As Amsterdam surpasses London as Europe’s largest financial trading centre, fears are growing that the EU will attempt to wrestle lucrative financial business away from the UK with a hard line on “equivalence” agreements.

No 10 claimed post-Brexit “fragmentation” of share trading away from London is in no one’s interests (trying telling that to the Dutch).

Keir Starmer said it was time for chancellor Rishi Sunak to step up and protect the City. The Labour leader said he is “very worried” that the Brexit deal has almost no provision for financial services.

“What I want is to see progress here. The chancellor said that he would look after the City of London on financial services; he needs to make good on that promise because we absolutely need to protect our financial services.”

Bank of England governor Andy Haldane is worried about it too. But in his latest comments, Haldane described the UK economy as a “coiled spring” set to surge back this spring.

Labour leader Keir Starmer

(Reuters)

Adam Forrest12 February 2021 08:47

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Brexit costs four times greater for UK than EU, says Brussels

The UK will suffer an economic hit four times greater than the EU, according to a forecast from Brussels.

The European Commission predicted Britain’s GDP loss by the end of 2022 will be 2.25 per cent. In contrast, the hit taken by the EU will only be 0.5 per cent.

“While the FTA [free trade agreement] improves the situation as compared to an outcome with no trade agreement between the EU and the UK, it cannot come close to matching the benefits of the trading relations provided by EU membership,” said the commission.

Both UK and EU will suffer Brexit hit

(Getty)

Adam Forrest12 February 2021 08:44

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UK and EU pledge to find ‘workable solutions’ to NI crisis

Cabinet Office minister Michael Gove and European Commission vice president Maros Sefcovic have pledged their full commitment to “proper implementation” of the protocol in Northern Ireland.

It seems their meeting went about as well as could be expected – a “frank but constructive” discussion – and they’re expected to hold a virtual meeting with NI business leaders next week in an effort to find “workable solutions” to red tape disruption.

Sefcovic ruled out major changes to the protocol, and Ireland’s premier Micheál Martin said any pause in grace period deadlines could only be “months”.

Adam Forrest12 February 2021 08:38