Brexit

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A dramatic 41 per cent plunge in exports of goods to the EU in January is the first official indication of the profound impact of Brexit on UK trade. But the effects for businesses were clear before the new year as they struggled with a mountain of extra paperwork, electronic forms and safety checks. While the government sought to downplay alarming trade figures on Friday, claiming that the record fall was due to temporary factors including Covid-19 lockdowns, firms across the country tell a different story. Some of the effects are probably short-term, and trade experts are expecting a partial recovery over the coming months but businesses are now burdened with significant extra costs and some feel guidance from the government has been severely lacking.

But the impact of Brexit is undeniable. Official figures show food and live animal exports to the EU fell by 54 per cent in January compared to 12 months earlier. Fish and shellfish exports plunged 83 per cent from £92m to £16m. That was despite Boris Johnson’s government making fish a totemic issue during negotiations with the EU.

Ian McCulloch founder and managing director of gin maker Silent Pool Distilleries says “nothing positive has happened yet” for his company as a result of leaving the EU. “We have increased export paperwork, cash is tied up in raw materials from the EU as we have to hold greater stocks; there has been a massive increase in shipping costs, driven in part by the government using containers as temporary storage at ports,” he says.

 Brexit: UK businesses battle with red tape and higher costs as trade with EU plunges | The Independent