BCC Press Release: EU reset must drive growth
On the fifth anniversary of Brexit, the BCC is calling on the Government to use its planned EU reset to achieve concrete change and help drive UK economic growth. Research by the BCC’s Insight Unit has shown that SME exporters have faced an uphill struggle to sell goods and services in Europe as paperwork and costs have ballooned: Two fifths (41%) of exporters disagree the Brexit deal is helping them grow sales. Only 14% of exporters think the deal is helping them to grow. Almost half (46%) of businesses want the Government to make it easier for UK staff to work in the EU. More than a third (37%) want a reduction in VAT requirements to export to the EU. And a quarter (25%) want the UK to align with rules and regulations with the EU in key goods sectors. Trade with the EU is covered by the Trade and Co-operation Agreement (TCA) which was agreed on Christmas Eve in 2020, almost 11 months after the UK left. It allows tariff-free trade with the EU but requires British and EU firms to produce documentation and paperwork for all shipments. Services access is also limited by rules on business mobility. Companies say the biggest barriers to exporting to the EU are customs procedures and documentation (45), export documentation (39%), regulations and standards (35%) and tariffs (33%). Awareness of upcoming changes in trade rules and regulations being made by either the UK or the EU are also alarmingly low, with more than three quarters of firms knowing no details of much of the legislation. This includes knowledge of the Carbon Border Adjustment Mechanism (CBAM), Border Target Operating Model (BTOM), Safety and Security Declaration Requirements and new rules on business-to-business movements of parcels to Northern Ireland.
Fiona Parsons
31 January, 2025
Business West
