Despite government claims of success, there are increased signs that post-Brexit trade barriers are hitting smaller UK businesses hard, with some even giving up international trading.
Last week, minister for industry and economic security Nusrat Ghani claimed that, since leaving the single market, UK trade had climbed 24%.
She told Parliament: “Having regained our regulatory sovereignty, we are now able to ensure that our regulation is tailored to the UK economy, supports our businesses and protects our consumers.”
According to a government report, UK global imports indeed rose 24%, but that was year on year between March 2022 and March 2023, with exports up 18% over the same period.
And UK-EU trade hit a record high, in cash terms, in 2022 versus 2019, up 24%, with imports up 36%. However, export figures look far less impressive, dropping from 40% as a proportion of UK trade to 36%, with total export trade to non-EU countries down 10% over the period.
But one UK SME trader told The Loadstar: “Maybe for big business, there may be higher figures. But for SMEs, it’s the reverse.
“VAT charges at point of entry to the EU have crippled small businesses like mine. Our prices have doubled. I know a lot of people who just gave up selling abroad. I’ve had to discount on postage just to try and keep an EU customer base.”
Federation of Small Businesses (FSB) policy chair Tina McKenzie added: “Unlike big corporates, most small firms don’t have the specialised resources needed to deal with complex customs procedures, so they’re dependent on intermediaries.
“Smaller businesses may also have to bear higher costs, as they are unable to commit to large volumes and less able to reach fixed price agreements or to negotiate with couriers.”
Data provided by the FSB indicates that some 9% of SMEs have ceased international trading since 2018, with 45% of federation members claiming they felt abandoned by government.
And the SME trader told The Loadstar they were “very much afraid that things can only get tougher for SME’s”.
They added: “What’s most galling is that the systems are in place – display, ordering and fulfilment via the web – but UK businesses can’t take full advantage of this due to the ‘Brexit deal’ negotiated.”
