The PSNI have a contingency plan in place in anticipation of potential trouble over the Twelfth of July.
Officers have been told leave is being cancelled over the July week and plans are in place should loyalist tensions spill out onto the streets.
It was hoped tensions around the Northern Ireland protocol could be eased, with the EU now agreeing to an extended grace period on checks on chilled meats and a change to legislation to ensure there is an undisrupted supply of medicines into Northern Ireland.
However, the ruling in a High Court case aimed at removing the Protocol “couldn’t have been more badly timed” according to sources.
There are fears that the Brexit challenge, taken by Jim Allister, Kate Hoey and Ben Habib, which they lost on every single legal point, will now be exploited by those wishing to inflame tensions.
Sources say anger at the ruling will be used by those keen to exploit the situation and bring instability to the streets over the Twelfth.
In April, when the PPS said there would be no prosecutions in relation to the attendance of members of Sinn Fein at former IRA man Bobby Storey’s funeral, loyalist violence erupted in parts of Northern Ireland with allegations of “two tier policing” and calls for Chief Constable Simon Byrne to resign.
Sources say the Protcol ruling will be just as easily exploited by those seeking to use violence to undermine the current political process and force London to pay attention to loyalists demands.
“The ruling will pour fuel on the fire, one day before the first of July it plays into the narrative that the Union is under threat,” said a senior loyalist source.
“And of course the loyalist ceasefires were based on the premise that the Union was safe, clearly following the judgment no one could credibly say the Union is safe. The young loyalists will be hard to control now."
Police also fear the arrival of large number of Scottish loyalists, planning to travel to Northern Ireland next week for the Twelfth, could increase the potential for instability.
Senior officers are said to be concerned that the large numbers of Scottish loyalists may make policing the Eleventh Night and Twelfth of July increasingly difficult in some areas here.
Flights and ferry crossing have been booked to capacity with additional crossings added to meet demand.
Last year the Covid pandemic meant that there were few bonfires and parades around the Twelfth with the anniversary scaled down over fears of further spread of the virus.
However, this year huge pyres have already appeared across Northern Ireland, the largest in Moygashel just outside of Dungannon in Co Tyrone.
Earlier this year a number of loyalist areas said they would not be cooperating with local councils or police when arranging bonfires or parades.
This has resulted in some large fires being built close to residential and commercial properties.
In Newtownards a fire station is expected to have windows boarded up to protect it from a huge loyalist bonfire built on waste ground close to the NI Fire and Rescue Service (NIFRS) building.
Bonfire builders have refused to move or reduce the size of the fire which has residents concerned it could cause damage to property when lit on Sunday July 11.
The Belfast Telegraph contacted the NIFRS for comment but at time of going to print they had not yet responded.
Meanwhile, the Orange Order has said there will be smaller parades at around 100 locations on July 12, rather the traditional 18 main demonstrations.
For the 331st anniversary of the Battle of the Boyne have, the Orange Order said it will continue to play a “positive role” in the fight against Covid-19 by not holding the main demonstrations.
Adding that with the current Covid-19 health guidelines limiting events to 500 participants, organising smaller parades was the best way to ensure the demonstrations went ahead.
Orange Order Grand Master Edward Stevenson said: “These smaller demonstrations will help reduce crowds, remove the need for travelling long distances to see a parade and ensure that we as an Institution continue to put the safety of everyone to the fore.”