A recent survey indicates one-third of UK businesses are advocating for reduced Brexit-related regulations, aiming to enhance trade efficiency.
- Despite a general optimism for growth, businesses face challenges due to complex post-Brexit trade rules imposed by the government’s current framework.
- A significant 31% of enterprises urge streamlining customs procedures, citing increased costs and time as major barriers.
- Businesses highlight the need for better UK-EU mutual recognition of professional qualifications to foster expansion and collaboration.
- Industry leaders call for enhanced government support in sourcing international clients and staffing solutions to boost competitiveness.
The survey, conducted by Santander, reveals a robust sentiment among small to medium-sized businesses regarding their growth prospects, with 74% expressing confidence for the next three years. Notably, 36% of these businesses classify themselves as ‘very confident’, a remarkable increase from 22% in the previous year. However, this optimism is tempered by the complexity of trade regulations following Brexit, prompting many to call for governmental intervention aimed at streamlining these processes.
The intricacies of the post-Brexit regulatory landscape stand as a primary concern, with approximately 31% of businesses lobbying for a reduction in red tape surrounding customs procedures, trading licences, and mutual recognition of professional standards across Europe. These regulations, which have been enacted since the UK’s exit from the European Union in January 2020, represent significant hurdles. Companies report that navigating the new border controls, customs declarations, and health inspections has resulted in increased costs and elongated timelines for exporting goods. Moreover, delays such as those impacting the Windsor Framework, which is intended to regulate the Northern Ireland Protocol, exacerbate the uncertainty facing businesses.
Another crucial issue arises with the need for improved mutual recognition of standards and qualifications between the UK and the EU. Businesses argue that such advancements would ease the movement and employment of professionals across borders, thereby enhancing business expansion and collaboration. While the EU-UK Trade and Cooperation Agreement includes terms for potential Mutual Recognition Agreements (MRAs), progress remains sluggish, with Brussels having finalised only one agreement, notably with Canada, regarding the qualifications of architects. Conversely, the UK has established MRAs with non-EU nations like New Zealand, covering professions such as auditors.
Government assistance is also sought by 25% of businesses to facilitate the acquisition of international clients, partners, and suppliers, highlighting the ongoing recruitment challenges faced by 24% of businesses in hiring suitable talent domestically. These concerns underscore the broader difficulties companies encounter in the post-Brexit period, as they strive for growth and competitive positioning in the global marketplace.
Businesses express optimism yet face significant regulatory and operational challenges, underscoring the need for governmental action.
