Small business Brexit worries
REGARDING the publication of the Government’s Brexit White Paper.
After more than two years since the EU referendum, we finally have a Brexit destination that Government hopes to negotiate.
We hope that the EU welcomes this negotiating position and does not dismiss it out of hand.
With less than 33 weeks before we leave the European Union, we need to see tangible and comprehensive details on these proposals and how they will impact small businesses.
As we draw closer to the exit date, it is welcome to see that the Government has stepped up preparations for a ‘no-deal’ scenario.
The Government must look to ramp up the conversation with small businesses to find out how these proposals will actually affect the day to day running of their business.
If there are to be any negative impacts, Government must come up with solutions to soften these and ensure that small businesses are not damaged.
Newly published research from the Federation of Small Businesses (FSB) shows that 59% of small businesses that export goods to the EU Customs Union, feel that trade would be impacted if overall costs increased as a result of having to complete additional customs declarations. 11% of smaller firms say that they would stop exporting to the EU altogether.
The FSB calls on Government to have realistic proposals on the table to remove the need for customs declarations and rules of origin for trade with the European Union.
Two thirds of current small business importers, who know the next destination of their imported good, say that they would find it difficult to operate dual systems and tracking arrangements depending on whether an imported good was exported to the EU or remained in the UK.
Further FSB research shows that almost one fifth (19%) of smaller businesses exporting to the Rest of the World are currently using a free trade agreement to support their trade of goods and services.
Over a third (36%) of smaller business current exporters stated that free trade agreements would be the most useful intervention to help them to increase the value of their exporting activity.
Whatever customs arrangement the Government manages to negotiate, small businesses will need significant support to ensure that they are making the most of preferential trading terms.
The Government can guarantee this by enshrining within all Free Trade and Preferential Trade Agreements, a dedicated and bespoke Small Business Chapter. This model would help ensure small firms are supported in realising their exporting and wider trade ambitions. Brian Woods Regional chairman Federation of Small Business (FSB)