Brexit: government urged to stop cost of VAT rule change hitting UK firms

Treasury committee chair Nicky Morgan demands clarification on how British businesses can avoid paying VAT upfront when they import goods post-Brexit

The government has come under pressure to reveal the impact on more than 130,000 UK firms of rules due to take effect after Brexit that will force them to pay VAT upfront for the first time on all goods imported from the European Union.

Nicky Morgan, the Tory chair of the influential Treasury select committee, has demanded to know what contingency plans were being made to avoid the extra cost of the rule change hitting UK firms.

Staying in the single market and customs union