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Nearly a third of British businesses are calling on the government to cut post-Brexit regulations and red tape to support British trade, a Santander survey has found.
The research shows that while there is a growing sense of optimism among small to medium-sized businesses, many are calling for action to ease the burden imposed by Brexit-related trade requirements.
The research shows that almost three-quarters (74%) of businesses are confident about their growth prospects over the next three years, with 36% describing themselves as “very confident” – a significant increase from 22% the year before. Beyond this optimism, however, companies are calling for changes that can streamline international trade and strengthen their growth potential.
Challenges with trade rules post-Brexit
One of the most pressing concerns is the complexity of post-Brexit regulations. Nearly a third (31%) of businesses want governments to reduce red tape associated with customs procedures, trade licensing and mutual recognition of professional standards and qualifications across Europe. These legal requirements, introduced following Britain’s departure from the European Union in January 2020, have further complicated international trade.
Since Brexit, companies have had to deal with new border controls, customs declarations and health certifications, increasing the costs and timeframes for exporting goods. The recently delayed implementation of parts of the Windsor Framework – a legal agreement designed to amend the operation of the Northern Ireland Protocol – has also added to the uncertainty. For example, new customs processes for business-to-business parcels were due to come into effect in October 2024, but have now been postponed until March 2025.
Mutual recognition of standards and qualifications
Another key issue raised by businesses is the need for better mutual recognition of standards and qualifications between Britain and Europe. This would make it easier for professionals to move and work across borders, enabling business expansion and collaboration.
Although the EU-UK Trade and Cooperation Agreement includes the possibility of Mutual Recognition Agreements (MRAs) for specific sectors, progress has been slow. Brussels has concluded only one such agreement, with Canada, to simplify the recognition of architects’ qualifications. Meanwhile, Britain has announced MRAs with non-EU countries including New Zealand, allowing mutual recognition for accountants.
Labour’s election manifesto recognizes the importance of improving mutual recognition with the European Union to strengthen Britain’s trading relationships, indicating this could be a focus for the next government.
Calls for more government support
In addition to regulatory relief, a quarter of companies (25%) are asking for more government support in finding international customers, business partners and suppliers. Recruitment challenges were also highlighted, with 24% of companies asking for more help finding the right talent in Britain.
These findings reflect the ongoing challenges facing businesses in the post-Brexit landscape, with many calling for government support to help them grow and compete on the global stage.