A significant number of UK businesses are advocating for a reduction in Brexit-related regulatory demands.
- In a survey, 74% of businesses expressed optimism for growth over the next three years, but challenges remain.
- 31% of businesses are particularly affected by complex post-Brexit customs regulations.
- The lack of mutual recognition of standards and qualifications between the UK and Europe poses additional difficulties.
- Businesses also seek government assistance in expanding their international presence.
In a recent survey conducted by Santander, it has been revealed that a substantial portion of UK businesses are seeking governmental action to alleviate the burdens of Brexit-related trade regulations. While there is optimism, with 74% of businesses confident in their growth potential, regulatory complexities continue to pose significant challenges.
One of the primary issues highlighted by these businesses is the intricate nature of post-Brexit regulations. Nearly one-third, or 31%, of companies have identified the need for a reduction in red tape surrounding customs procedures, trading licences, and the mutual recognition of professional standards and qualifications within Europe. These regulatory hurdles, introduced following the UK’s departure from the EU, have complicated international trade, increasing both costs and timeframes for exporting goods. Additionally, the delayed implementation of certain aspects of the Windsor Framework has added to the prevalent uncertainty. For instance, the new customs processes for business-to-business parcels, initially set for October 2024, are now postponed to March 2025.
Another pressing concern is the current state of mutual recognition of standards and qualifications between the UK and European nations. This gap hinders professional mobility and business expansion across borders. Although the EU-UK Trade and Cooperation Agreement allows for Mutual Recognition Agreements (MRAs) in specific sectors, actual progress has been minimal. While Brussels has managed to negotiate an agreement with Canada to simplify architects’ qualification recognition, the UK’s focus has been on MRAs with non-EU countries, such as New Zealand, particularly for auditors. Labour’s manifesto suggests that improving these recognitions with the EU might become a prioritised issue for the subsequent government.
Beyond regulatory concerns, businesses have expressed a desire for government support in enhancing their international operations. Around 25% are looking for better assistance in identifying international clients, partners, and suppliers, highlighting the need for more robust government-backed support systems. Another 24% have pointed out recruitment challenges, requesting more aid in securing suitable talent within the UK.
These insights underscore the multifaceted challenges faced by businesses in the post-Brexit environment. Many companies are urging the government to provide the necessary support to enable them to grow and remain competitive on a global scale.
The need for streamlined Brexit regulations is clear, with UK businesses calling for government intervention to support their growth and competitiveness.
