33% of all UK exporters to the EU disappear due to Brexit red tape
The number of UK businesses exporting goods to the EU fell by 33% to 18,357 in 2021, from 27,321 in 2020, according to HMRC data.
Discuss numbers with AM CityMichelle Dale, senior executive at accountancy firm UHY Hacker Young, pointed out that the fall is due to the extra bureaucracy that UK businesses now have to go through when exporting to the EU.
“Businesses are not getting enough government support to navigate the post-Brexit trade minefield,” she said.
“Many SMEs cannot afford professional advice to deal with Brexit bureaucracy. Many have probably decided that trade with the EU is not worth the cost,” Dale added.
“Fewer UK businesses exporting to the EU will mean lost opportunities for growth and expansion in Europe.”
In response to the findings, an HMRC spokesperson said AM City“We have continually advised caution when comparing statistical trade data after January 2021.”
He explained that “the way HMRC collects data has changed since the UK left the EU, and comparing data from year to year can lead to misinterpretations and inaccuracies. factual, which we believe is the case here”.
“In this case, not only was our caution ignored, but the analysis only takes into account a very small subsection of the overall trade data,” the spokesperson added.
The new figures from HMRC come just weeks after the European Union confirmed it had issued the bloc’s first-ever challenge against the UK at the World Trade Organization over Britain’s green subsidy scheme. Brittany.
The European Commission, the EU’s executive body that oversees the common trade policy of all member states, says the criteria used by the UK government to award grants to offshore wind projects favored UK-based companies and entities. United.
“This policy violates the fundamental WTO principle that imports should be able to compete on an equal footing with domestic products and harms EU suppliers, including many SMEs, in the green energy sector. “, explained the Commission in a press release.
In addition, it emerged last week that Brexit had spurred an increase in the number of businesses in the city sponsoring overseas recruits, with around 200 workers based outside the UK being hired per week.
It comes amid a labor shortage on British soil, which has seen the city’s law firms fight for the top pay.
Visa sponsorships by UK-based financial services companies have been rising steadily for around a year, from 722 in the fourth quarter of 2020 to 2,192 in the final months of last year, the Times, citing Home Office figures.
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