On the 10th anniversary of Brexit, the British Chambers of Commerce (BCC) have called for a clear plan from government to ease the burdens it has placed on business

BCC research shows over half of UK exporters think the current trade deal with the EU is making it harder to export and the need for change is urgent. Only 16 per cent say the current deal is supporting them to grow. This has been a consistent picture since the BCC started to track the impact of the deal in 2021.

Aligning
The latest data also shows that three times as many exporters favour aligning with EU rules on products as don’t:

  • 55 per cent of UK exporters say this would help their business
  • 18 per cent believe it would hinder growth
  • There is also increasing concern among UK firms involved in European supply chains about the EU’s Made in Europe agenda
  • There are competing visions within the EU on its exact format, but a more extreme version could have a chilling effect on cross-border trade
  • New content rules on sourcing from within the EU could squeeze British firms out of supply chains as the United Kingdom is now a third-party country.

Other key issues for business that still need to be addressed include customs red tape, VAT complexity, business mobility, mutual recognition of professional qualifications, and increased cooperation on defence.

Complexity 
BCC head of trade policy William Bain commented: “Businesses have been put through the wringer since Brexit, as the costs and complexity of trading with the EU have soared. There is insufficient recognition and debate over the damaging effect on trade and growth this has caused. The Office for Budget Responsibility puts the long term hit to the UK’s economic growth at four per cent.

Urgency
Bain said that there were many steps that could be taken to simplify trade and benefit both our economies. “But more urgency must be injected into the negotiations at the Leaders’ Summit in July and it is vital that political instability is not allowed to waste this opportunity.

“Top of the list must be finalising what has already been agreed. The bigger prize must be an economic security deal that confirms the UK’s involvement in EU supply chains and provides for closer defence cooperation.”

“These are the practical steps that can make a difference and ease the Brexit burden that firms have had to endure.
www.britishchambers.org.uk

 

 

The Brexit timeline

  • The UK referendum on leaving the EU took place on June 23, 2016
  • Article 50, the formal start of withdrawal negotiations was triggered on March 29, 2017
  • The UK left the EU on January 31, 2020
  • A transition period lasted until December 31, 2020 when the UK left the single market and customs union
  • The Trade and Cooperation Agreement which governs UK/EU trade was agreed on December 24, 2020
  • The UK’s new trading relationship started on January 1, 2021 with full customs and regulatory checks on UK exports
  • The UK introduced the first major controls on EU imports on January 31, 2024.