The UK Government is facing new pressure to “intensify” its negotiations with Brussels after a worrying new report found that many small and medium-sized enterprises (SMEs) are planning on shying away from exports in the event of a ‘no-deal’ scenario.
Earlier this week, a report published by the Federation of Small Businesses (FSB) revealed that, if the UK was forced to trade with the European Union (EU) under World Trade Organisation (MTO) rules, this would seriously discourage SMEs from international trade.
It found that, if Britain left the EU without a trade deal, 11 per cent of SME exporters would cease exporting to Europe altogether.
Furthermore, 59 per cent of SMEs told the FSB that they felt WTO rules would push up prices significantly, and therefore have a negative impact on their export activities.
Following the findings, the FSB has voiced concerns that a “disorderly no-deal exit” would discourage SME export activity – and that the Government needs to work harder to agree a favourable “pro-business” deal with the EU.
“The Government must think carefully about the very real consequences of a disorderly Brexit and do everything in its power to avoid this scenario,” said Martin McTague, the FSB’s Policy Chairman.
“Eight months is all we have left on the Brexit clock and time is running out to seal a deal that will avoid a disorderly ‘no-deal’ exit.
“Smaller businesses, and those businesses they rely upon, simply don’t have enough time to prepare for a cliff edge Brexit,” he said.
“However, responsible ‘no deal’ Brexit planning is [still] essential.”
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