Brexit red tape continues to stifle UK business growth

The British Chambers of Commerce (BCC), representing numerous firms through a network of chambers, highlighted the ongoing burden of bureaucratic processes and costs impacting businesses. They are advocating for a streamlined approach to trade with the EU.

The BCC is urging businesses to re-evaluate the UK’s relationship with the EU, following a commitment from Andy Burnham to outline future steps for the long-term partnership.

“Firms have demonstrated considerable adaptability in response to Brexit, but these adjustments haven’t eliminated the expenses associated with paperwork, delays, and unnecessary bureaucracy,” stated Shevaun Haviland, director general of the BCC. “The global landscape has evolved, with rising protectionism and the EU’s industrial policy adjustments, making inaction untenable.”

The organization emphasizes that a range of options exist beyond simply remaining or leaving and calls for a relationship that provides UK businesses with a strong foundation for trade, investment, and expansion.

The BCC is currently conducting consultations with tens of thousands of businesses to gather their perspectives on future EU trade relations. A survey involving approximately 1,500 firms revealed that over a third believe removing customs paperwork and delays is essential for growth. This figure rises to 58 percent among manufacturers and 56 percent among exporters.

Furthermore, 42 percent of exporters identified tariffs, quotas, or rules of origin as obstacles to EU market access. A separate survey conducted by S&P Global indicated that manufacturers are experiencing extended delivery times due to shipping rerouting, port congestion, and disruptions to key transport routes stemming from global conflicts.

The discussions are taking place ahead of a summit in Brussels later this month, where the prime minister has pledged to present the next steps for considering the UK’s long-term relationship with the EU. Burnham aims to secure agreements on food and drink, emissions trading, and a youth mobility scheme at the summit on November 20th, while also planning to explore options for the future relationship.

He has expressed that the Brexit deal negotiated by the previous Conservative government fell short of expectations and was more restrictive than initially promised during the referendum.