Sunday, May 19, 2024
HomeBusinessTwo years after Brexit, the economic ordeal of British SMEs

Two years after Brexit, the economic ordeal of British SMEs

Since 2020, many UK businesses have faced colossal administrative and export costs, reports Franceinfo.


Many British SMEs lament the disastrous economic effect of Brexit. (illustrative image)
© Jean-Pierre Amet / MAXPPP

. to 1€ the 1st month

Un referendum with far-reaching consequences. As Franceinfo indicates, the United Kingdom’s exit from the European Union in 2020 plunged many small and medium-sized enterprises (SMEs) into economic setbacks. According to the results of a recent report by the British Chamber of Commerce, relayed by our colleagues, more than three out of four SMEs (77%) believe that Brexit does not help them to increase their sales or develop their activity.

More than half (56%) also point to the fact that they have difficulty adapting to the new rules for the exchange of goods. And to deal with it, these companies have, in many cases, no choice but to take out cash. “No one really knew what to do. We had to work with companies that not only helped us to certify our products but also made sure that we fulfilled all the conditions: all this has a cost! “Summarizes Franceinfo Sam Martin, boss of a brand of cosmetics for men based in the north of England.

Gargantuan shipping costs

But red tape hurdles aren’t the only challenges UK businesses have faced since Brexit. The shipping costs have indeed skyrocketed and qother companies out of five (80%) have seen their cost of imports increase. So much so that some of them, like that of Sam Martin, are forced to suspend their sales abroad, the time to find a more advantageous solution.

READ ALSOThe Brexit crash

“Our business strategy is now focused on the UK. The obstacles to exporting have become so numerous. Europe was our biggest market, apart from UK customers, before Brexit. It is now a small part of our turnover. Until we find easier ways to export,” he says.

READ ALSOPost-Brexit negotiations: fundamental disagreements

The report issued by the British Chamber of Commerce therefore recommends five solutions to help SMEs cope with the consequences of Brexit: ccreate a supplementary agreement with the EU that eliminates or reduces the complexity of exporting foodstuffs for SMEs,set an additional agreement, as that of Norwaywhich exempts small businesses from the obligation to have a tax representative for VAT in the EU, hasallow CE marked goods and components to continue to be used in Britain after 2024 cconclude parallel agreements with the EU and Member States to allow British companies to travel longer and work in Europe and finally pcome to an agreement on the future of the Protocol on Ireland/Northern Ireland with the European Commission in the first months of 2023, in order to stabilize the trade relations.

Recent posts