The UK is pausing the development of the Single Trade Window, a digital border service that would have streamlined data relating to cross-border trade.
James Murray, the Exchequer Secretary to the Treasury, made a written statement to the House today (5 November) to confirm that the delivery of the new system will be paused in 2025 and 2026.
He 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.”
Simplification ambition
The UN Centre for Trade Facilitation and Electronic Business defines a single window as a “facility that allows parties involved in trade and transport to lodge standardised information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements”.
The previous Conservative government initially trailed that it intended to develop such a system for the UK when releasing its ‘2025 Border Strategy’ in 2020.
It then announced a consultation into the design of the system in 2022, before introducing its plans to build the system in 2023 for release in 2024.
The first strategic release to the public was scheduled to include an interface for handling the upcoming introduction of safety and security declarations for EU imports, due in January next year. This has now also been put on hold.
Good intentions
Ilona Kawka, a digital trade expert who leads the Chartered Institute of Export & International Trade’s Imports Advisory Practice, has said that, despite the pause, the original intention behind the Single Trade Window was a positive one.
“The intention behind the Single Trade Window – to simplify new complex processes and to allow further digitalisation of cross-border trade, particularly following the UK’s departure from the EU – is a positive one.
“It has become clear that businesses want trade processes to be simplified and the digitalisation of documentary and data requirements around trade is one of the most effective ways of achieving this.
“The pause can be used as an opportunity for the new government to now work closely with industry and businesses to ensure that the right digital solutions are provided. There is now also an opportunity to use the time to raise better awareness among businesses of the opportunities in trade digitalisation and to educate them on how to make the most of these.”
The work continues
Kawka notes that, while the Single Trade Window initiative is set to be paused, there is ongoing work taking place in industry on the digitalisation of trade.
This includes the government-endorsed pilots of solutions to develop an ‘Ecosystem of Trust’ in trade that took place in 2022 and 2023, and a new series of ‘Border Trade Demonstrators’ which were announced towards the end of last year.
Baroness Neville-Rolfe, who was a Cabinet Office minister at the time, said these demonstrators were “specific projects” focused on overcoming problems identified by government and industry, “such as the complexity and time taken when integrating industry and government systems.”
Kawka notes that the Chartered Institute has been involved in both the Ecosystem of Trust and Border Trader Demonstrators initiatives.
“There has been a lot of good work done in recent years to develop new digital solutions to simplifying cross-border trade, which the Chartered Institute has been spearheading.
“The pause in the Single Trade Window development gives industry time to continue developing and raising awareness of these solutions in the business community.”
Get in touch
Kawka added that the Chartered Institute will continue to listen to and represent its members and the wider trade community in its interactions with HRMC over the coming months.
“Government will be continuing industry engagement across the rest of 2024 and over the coming years on trade digitalisation.
“The Chartered Institute is an active presence on key government-industry forums, including the Joint Customs Consultative Committee, and we will continue to serve as an interlocutor between policymakers and businesses.
“Please do get in touch with your questions and thoughts about today’s news and the future of trade digitalisation.”
You can share your views with Ilona by emailing Ilona.kawka@export.org.uk.