A LACK of border preparations for the end of the Brexit transition period next January 1 will lead to “significant disruption” whether a trade deal is agreed or not, the UK Government’s spending watchdog has warned.

The National Audit Office (NAO) said in a report that while the UK had now left the EU, preparations to manage the border when the transition period ends “remain very challenging”.

They continued to be significantly affected by ongoing negotiations, the wider political context and the impact of Covid-19.

While progress had been made in recent months, significant risk remained, particularly in relation to requirements to implement the Northern Ireland Protocol.

“The January 1 deadline is unlike any previous EU Exit deadline – significant changes at the border will take place and government must be ready,” said NAO head Gareth Davies.

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“Disruption is likely and government will need to respond quickly to minimise the impact, a situation made all the more challenging by the Covid-19 pandemic.

The report added: “There is a risk that widespread disruption could ensue at a time when government and businesses continue to deal with the effects of Covid-19.”

The watchdog said the time pressure and risks meant the Government was committing a lot of money to progress preparations in areas – port infrastructures and customs intermediaries – which would normally be provided by the private sector. However, the “unique” situation departments were operating within made additional spending inevitable.

Labour MP Meg Hillier, who chairs the Public Accounts Committee, said: “It’s incredibly worrying that with two months to go, critical computer systems haven’t been properly tested.

“The Government can only hope that everything comes together on the day, but this is not certain. If it does, it may be able to limit the extent of the disruption.”