Businesses count cost of Brexit red tape

Brexit has left British manufacturers facing increased red tape and subsequently less revenue because of the greater complexity and cost of exporting goods to the European Union, a survey by a leading British industrial association has revealed.

Make UK describes itself as an organization that "champions and celebrates British manufacturing and manufacturers", a sector that employs almost 3 million people and is responsible for 60 percent of the country's research and development work.

A survey of more than 201 of its members revealed that almost one-third of those asked said they had encountered delays of up to two weeks when importing or exporting to the EU, with more than one-third saying they had lost revenue, and one in five saying the delays had cost them possible business. Almost three-quarters of companies asked said they had encountered delays during the last three months.

Figures published in Germany this week paint a similar picture from the other side of the Channel, with imports from the UK in January having slumped by more than 56 percent, based on the same month 12 months previously.

"Government needs to smooth out difficulties at UK ports so that shipments can easily be delivered," Make UK's chief executive Stephen Phipson told the Financial Times.

Brexit was sold on a promise of Britain taking back control of its borders, and improved international trade arrangements, better than the ones offered by being part of the EU, but for many exporters, the reality has been a huge increase in paperwork and bureaucracy, which has resulted in the need to recruit 50,000 more customs officers.

"We are encouraged that the government is already working to train more high-quality customs officials and to give more assistance with customs paperwork, but this needs to be driven forward at speed to give the quickest possible assistance to British companies already struggling to get back to normal as trade recovers from the COVID-19 pandemic," Phipson added.

The UK government says twenty million pounds ($27.9 million) has been made available to assist small businesses in adjusting to the new trade rules.

"We will ensure businesses get the support they need to trade effectively with Europe and to seize new opportunities as we strike trade deals with the world's fastest-growing markets," said a government spokesperson.

But The Guardian newspaper quoted several small businesses who have encountered only obstacles since the post-Brexit rules came into play.

Catherine Bedford, founder of cycling helmet company Dashel, said exporting had been made hugely difficult and her company had suffered as a result.

"Thanks to Brexit, we've gone from profitable to barely scraping by," she said. "We can't predict delivery times as items are being held up at French customs, our entry point into Europe. There is a massive backlog and items are being turned back despite up-to-date paperwork."