Almost a third of UK businesses are urging the government to reduce post-Brexit regulations and red tape to support British trade, according to a survey by Santander.
The survey reveals that while there is a growing sense of optimism among small and medium-sized businesses, many want action to ease the burdens imposed by Brexit-related trade requirements.
The survey found that nearly three-quarters (74%) of businesses are confident about growth prospects over the next three years, with 36% describing themselves as “very confident” – a significant increase from 22% last year. However, along with this hope, businesses are asking for changes that could make international trade strengthen their growth potential.
Challenges with post-Brexit trade rules
Another major concern is the complexity of post-Brexit regulations. Almost one-third (31%) of businesses want the government to reduce red tape related to tax procedures, trade licenses, and common recognition of professional standards and qualifications across Europe. These regulatory requirements, introduced after the UK’s departure from the European Union in January 2020, have added problems to international trade.
Since Brexit, businesses have had to navigate new border controls, customs declarations, and health certifications, which have increased shipping costs and times. The later delayed implementation of parts of the Windsor Framework – a formal agreement designed to reform the operation of the Northern Ireland Protocol – also contributed to the uncertainty. For example, the new customs procedures for business-to-business parcels were scheduled to come into force in October 2024 but have now been delayed until March 2025.
Mutual recognition of degrees and qualifications
Another key issue raised by businesses is the need to develop common recognition of standards and qualifications between the UK and Europe. This will make it easier for professionals to travel and work across borders, facilitating business expansion and collaboration.
Although the EU-UK Trade and Cooperation Agreement includes the possibility of Mutual Recognition Agreements (MRAs) in certain sectors, progress is slow. Brussels has made only one such agreement, with Canada, to facilitate the recognition of architects’ qualifications. Meanwhile, the UK has announced MRAs with non-EU countries, including New Zealand, allowing auditors to consult each other.
Labour’s election manifesto has acknowledged the importance of developing a partnership with the European Union to strengthen the UK’s trade relationship, suggesting this may be a focus of the next government.
It is asking for more government support
In addition to legal assistance, a quarter of businesses (25%) want more government assistance in finding international customers, business partners, and suppliers. Recruitment challenges were also highlighted, with 24 per cent of businesses asking for more help finding the right talent in the UK.
The findings highlight the ongoing challenges businesses face post-Brexit, with many seeking government support to help them grow and compete globally.
