Six ways she wants to change the law

Relaxing trade checks

The new proposals will create a ‘green channel’ for goods leaving Great Britain whose final destination is Northern Ireland. Liz Truss said ‘trusted traders’ operating in this category would have customs checks ‘removed’. Only goods in the ‘red channel’ which are destined for the Irish Republic will face the ‘full checks and controls applied under EU law’.

Two-track regulation

Firms will face a ‘dual regulatory regime’ allowing them to choose whether to comply with EU or UK rules. Companies wanting to supply Northern Ireland directly could avoid EU checks by choosing to comply with UK rules.

Targeting rule-breakers

Miss Truss said the new law would introduce ‘robust penalties’ for firms caught trying to smuggle goods into the Irish Republic without undergoing EU checks. Britain will also help enforce the rules by sharing goods movement data with Brussels. She said more than a million items of data are already being shared every week.

Taking back control of tax

The new law will restore full control of tax regulations in Northern Ireland to the Treasury. Under the terms of the Protocol, Chancellor Rishi Sunak cannot alter VAT rates in the Province because it has to continue to follow EU rules on the issue. This meant that a recent move to cut VAT on energy-saving products could not be applied in the Province.

Curbing European judges

The minister said the Government would take action to end the continuing role of the European Court of Justice (ECJ) in Northern Ireland. She said the protocol would be brought ‘in line with international norms’. This will involve ending the ECJ’s role as ‘final arbiter’ in trade disputes and replacing it with an ‘arbitration mechanism’.

Vow to avoid a hard border

The Foreign Secretary went out of her way to stress that the UK would do nothing to impose a so-called ‘hard border’ with the Irish Republic. The new legislation is expected to put this guarantee into law.