Brexit red tape is costing jobs and pushing SMEs to the brink, MPs warned
SMEs have warned they face an ‘existential threat’ stemming from the Brexit bureaucracy, costing them jobs and businesses. They want the government to appoint a dedicated minister to address their concerns.
At a meeting of the UK’s Trade and Inter-Party Affairs Committee on Thursday, small businesses said they were worried about rising costs and falling revenues.
Suren Thiru, head of economics at the British Chamber of Commerce, said: “There are definitely some start-up issues, so companies fill out the wrong paperwork and that sort of thing, but in terms of balance, it s This is more of a long-term structural problem. issues of the agreement which means that exporting to the EU may not be viable for some companies in the longer term. “
In his testimony to the panel, Lee Jones, general manager of chemicals supplier Fluorochem, said, “We have looked at all possible solutions… In a nutshell, if nothing is resolved this year, because we cannot allow us to sit still and wait for things to resolve. possibly come in twelve months or two years, we will move. “
He added: “You can’t stay competitive in Europe by shipping from the UK using the current methods … It’s an absolutely crazy system.”
The commission will use Thursday’s evidence to make urgent cross-party recommendations in government on how small businesses can be better supported.
Small businesses want a new minister at the Department for International Trade to help them overcome the challenges following Britain’s withdrawal from the EU.
A recent survey by Best for Great Britain showed that two-thirds (66%) of small businesses support greater cooperation with Europe on trade.
the majority of UK companies have experienced some form of disruption to trade with the European Union in the wake of Brexit, and many companies expect these problems to have long-term consequences, according to a study by EY and London First in the month latest.
The report found that customs and supply chains (72%), taxation and VAT (70%) and regulation (68%) are the three most common areas in which businesses have experienced disruption.
Businesses also highlighted delays in getting goods to destinations (43%), the need to re-register with UK and EU regulators (37%) and deal with changes contracts (38%) and data (34%), as some of the main challenges.
Previously, it was also reported that companies are withdrawing from Europe due to the costly new paperwork associated with Brexit.
Watch: 10 Ways To Protect Your Finances With Brexit