Enterprises across the UK are increasingly advocating for a reduction in the complex regulatory demands stemming from Brexit, as revealed by a recent survey.
The call for action highlights the significant challenges businesses face in navigating the post-Brexit landscape, despite an optimistic outlook for future growth.
Navigating Post-Brexit Regulatory Challenges
In the wake of Brexit, a prominent challenge confronting businesses is the intricate post-Brexit regulatory framework. Nearly a third (31%) of enterprises express a pressing need for the government to cut down on red tape concerning customs protocols, trading licences, and the mutual recognition of professional qualifications across Europe. These measures, put in place post the UK’s 2020 EU exit, have complicated international trade operations, substantially increasing the costs and durations involved in exporting goods. For instance, the introduction of new customs procedures, part of the now postponed Windsor Framework, highlights the ongoing uncertainties businesses face.
Urgency for Enhanced Mutual Recognition Agreements
A significant concern for enterprises is the requirement for enhanced mutual recognition of standards and qualifications between the UK and the European Union. Such an improvement would facilitate the mobility of professionals across borders, promoting business growth and collaboration. While the EU-UK Trade and Cooperation Agreement allows for specific Mutual Recognition Agreements (MRAs), progress is sluggish. Only Canada has secured an agreement with Brussels to simplify architects’ qualifications recognition, whereas the UK has established MRAs outside the EU with countries like New Zealand, enhancing mutual recognition for auditors.
Labour’s manifesto has identified the imperative to enhance mutual recognition with the EU, potentially prioritising this issue in future government agendas.
Government Support in Expanding International Markets
Parallel to regulatory easing, a quarter of businesses call for augmented governmental support in locating international clients, partners, and suppliers. An additional 24% are vocal about the recruitment challenges they face, urging for more governmental intervention to find suitable talent within the UK. These highlights emphasise the persistent obstacles businesses encounter in the post-Brexit milieu, where governmental backing is crucial for sustaining growth and global competitiveness.
Survey Highlights Optimism Amidst Challenges
Despite the complexities, the survey indicates a growing optimism among small to medium-sized businesses. 74% of these entities express confidence in their growth prospects over the next three years, with 36% feeling ‘very confident’. This optimism is significant compared to 22% the previous year, showing an upward trend in business sentiment.
Nevertheless, this hopeful outlook accompanies a demand for changes in current trade frameworks to bolster growth potential.
Impact of the Windsor Framework Delays
Post-Brexit, businesses had to adapt to new customs declarations and border controls, leading to increased export times and costs. Recent delays in implementing components of the Windsor Framework, particularly for business-to-business parcel customs processes, postponed from October 2024 to March 2025, exacerbate the atmospheric uncertainty.
These delays underline the necessity for a stable regulatory environment that businesses can rely on for strategic planning and execution.
Hence, navigating the complexities of regulatory changes while striving for simplicity is a balancing act businesses must master.
Role of Government in Recruitment and Talent Sourcing
Government intervention is also critical in addressing recruitment woes, with 24% of businesses seeking more support in finding skilled labour. Effective recruitment strategies within the UK are essential to bridge the talent gap exacerbated by tight post-Brexit immigration policies.
This support manifests not only in facilitating the hiring process but also in ensuring businesses have access to a skilled workforce necessary for competitive performance.
Call for Streamlining Trade Processes
Ultimately, UK businesses are advocating for a streamlined trade process to navigate the post-Brexit landscape efficiently. Reducing bureaucratic hurdles is not merely a request; it is a necessity for many enterprises seeking to optimise their operations and minimise unnecessary expenditures.
With streamlined processes, businesses can focus on growth and expansion, reinforcing their positions in the global market.
The survey underscores the tension between optimism and regulatory challenges, indicating a crucial need for government intervention in reducing red tape.
As businesses strive for growth and global competitiveness, streamlining bureaucratic processes is imperative to support their objectives.
