Platitudes were paid to the hundreds of thousands of businesses which are
set to be hit by the new rules stating VAT must be paid upfront on
imported goods from the European Union following Brexit.
During yesterday’s debate in Parliament, Mel Stride, a Treasury Minister
said, “It is an issue, (for) which the government and the Treasury has
sympathy. “It is something that we will be closely looking at.”
But those affected don’t want the Treasury’s sympathy they want an
assurance that their businesses won’t be jeopardised, or jobs threatened
because of cash flow problems which will arise from the requirement to make VAT payments up front.
Following yesterday’s debate business groups warned that companies may be forced to look at costly bank or insurance guarantees if they are expected to make the payments upfront.
The chair of the Treasury Select Committee acknowledged the problem and assured Parliament that her committee will be considering the issue…and this is probably the closest we will get to anything akin to an impact assessment.