One-third of UK businesses urge government to cut Brexit red tape

Almost a third of UK businesses are urging the government to reduce post-Brexit regulations and red tape to support British trade, according to a survey conducted by Santander.

The survey reveals that while there is a growing sense of optimism among small to medium-sized businesses, many are calling for action to ease the burdens imposed by Brexit-related trade requirements.

The survey found that nearly three-quarters (74%) of businesses are confident about growth prospects over the next three years, with 36% describing themselves as “very confident” — a significant increase from 22% the previous year. However, alongside this optimism, businesses are requesting changes that could streamline international trade and bolster their growth potential.

Challenges with post-Brexit trade regulations

One of the most pressing concerns is the complexity of post-Brexit regulations. Nearly a third (31%) of businesses want the government to reduce red tape related to customs procedures, trading licences, and mutual recognition of professional standards and qualifications across Europe. These regulatory requirements, introduced after the UK’s departure from the European Union in January 2020, have added complications to international trade.

Since Brexit, businesses have had to navigate new border controls, customs declarations, and health certifications, which have increased costs and timeframes for exporting goods. The recently delayed implementation of parts of the Windsor Framework — a legal agreement designed to adjust the operation of the Northern Ireland Protocol — has also contributed to the uncertainty. For example, new customs processes for business-to-business parcels were set to come into effect in October 2024 but have now been delayed until March 2025.

Mutual recognition of standards and qualifications

Another key issue raised by businesses is the need for improved mutual recognition of standards and qualifications between the UK and Europe. This would make it easier for professionals to move and work across borders, facilitating business expansion and collaboration.

While the EU-UK Trade and Cooperation Agreement includes the possibility of Mutual Recognition Agreements (MRAs) for specific sectors, progress has been slow. Brussels has only concluded one such agreement, with Canada, to simplify the recognition of architects’ qualifications. Meanwhile, the UK has announced MRAs with non-EU countries, including New Zealand, which enables mutual recognition for auditors.

Labour’s election manifesto has acknowledged the importance of improving mutual recognition with the European Union to strengthen the UK’s trading relationships, signalling that this could be a focus for the next government.

Calls for more government support

In addition to regulatory relief, a quarter of businesses (25%) are seeking greater government assistance in finding international customers, business partners, and suppliers. Recruitment challenges were also highlighted, with 24% of businesses requesting more help in sourcing the right talent within the UK.

These findings reflect the ongoing challenges faced by businesses navigating the post-Brexit landscape, with many calling for government support to help them grow and compete on the global stage.

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One-third of UK businesses urge government to cut Brexit red tape