It was revealed last week that an extension to the Northern Ireland Protocol grace period for chilled meats had been agreed upon.

But what does this mean for businesses exporting goods to Northern Ireland?

Here’s what you need to know.

What is the grace period for chilled meats?

As part of the Withdrawal Agreement and Northern Ireland Protocol, British businesses were given a grace period to prepare products in line with European Union (EU) food standards.

But the grace period was set to end on 30 June 2021, meaning businesses would have been prohibited to move chilled meats – such as sausages, chicken nuggets, mince, and pies – to Northern Ireland. This is because chilled meat products are generally not permitted for import from non-member states.

How long has the grace period been extended?

Due to the impact of the coronavirus pandemic, the grace period has now been extended until 30 September 2021 – giving British suppliers and UK regulators more time to align with EU standards, such as product-level labelling.

Crucially, the extension does not require rules in the rest of the UK to align with future changes in EU “agrifood rules”.

What has the Government said?

The Government said businesses will continue to be supported while permanent solutions are considered.

“This is a positive first step but we still need to agree a permanent solution – Northern Ireland is an integral part of the United Kingdom and its consumers should be able to enjoy products they have bought from Great Britain for years,” said Cabinet Minister Lord Frost.

He added: “The chilled meats issue is only one of a very large number of problems with the way the Protocol is currently operating, and solutions need to be found with the EU to ensure it delivers on its original aims: to protect the Belfast (Good Friday) Agreement, safeguard Northern Ireland’s place in the United Kingdom, and protect the EU’s single market for goods.”

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New State Aid rules will eliminate red tape and give British businesses greater access to financial support, the Government has revealed.

The report comes after the Subsidy Control Bill was introduced to Parliament on 30 June 2021.

According to the Department for Business, Energy & Industrial Strategy (BEIS), the new laws will replace the EU’s “bureaucratic” State Aid regime, which has been described by critics, such as the Confederation of British Industry (CBI), as slow, rigid, and prohibitive.

Under the EU initiative, all subsidies – except those under a Block Exemption Regulation – have to undergo a “lengthy bureaucratic process of being notified to and approved by the European Commission in advance” – resulting in lengthy delays and unnecessary compliance costs.

But the Government says Britain’s new independent subsidy control system will swiftly deliver financial support – such as a cash payment, a loan with interest below the market rate, or a guarantee – to businesses “without facing excessive red tape”, while also “delivering good value for the British taxpayer”.

The new regime, however, will not mirror the “1970s” approach of Government “trying to run the economy”, with companies succeeding solely through the support of financial subsidies.

The report also reveals that subsidies will not be awarded where there is a risk that jobs and economic activity could be relocated from one part of the country to another – known as displacement.

Commenting on the new regime, UK Business Secretary Kwasi Kwarteng said Britain is “seizing the opportunities of being an independent trading nation”.

“While the UK’s new system will be more agile and flexible, I have been clear that we will not return to the failed 1970s approach of the Government trying to run the economy, picking winners or bailing out unsustainable companies. Every subsidy must deliver strong benefits for local communities and ensure good value for money for the British taxpayer.”

He added: “Today’s Bill marks a clear departure from the EU State aid regime and will ensure our new subsidy system will maintain the UK’s competitive, free market economy that has been central to our economic success and national prosperity for decades.”

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