Efforts to navigate post-Brexit challenges have not eased the burden on UK businesses. During an E2Exchange event, industry leaders voiced concerns and frustrations over Brexit’s continued impact on operations. The lingering Brexit issues have led to increased paperwork and complications in exporting goods and services.
At the E2E’s International Track 100 event for 2024, top private businesses with significant export growth shared their experiences. Business leaders highlighted their struggles with new regulations, more paperwork, and the complexities of trading with the EU, emphasising the need for immediate government intervention.
Brexit’s Lingering Impact on UK Businesses
Brexit has remained a significant topic in UK politics in recent years. However, for the business community, the concern is more pronounced. At a recent E2Exchange (E2E) event, industry leaders expressed their frustration and concerns over Brexit’s ongoing impact on their operations.
The E2E’s International Track 100 for 2024 highlighted the UK’s top private businesses with the greatest export growth. During the event, business leaders from firms on the list discussed the difficulties they face due to Brexit, such as increased paperwork and red tape. The consensus was clear: Brexit has made exporting goods and services more complex and time-consuming.
Challenges of Trading with the EU
Simon La Fosse, founder of technology recruiter La Fosse Associates, called for another referendum on EU membership. He believes the UK needs to reconsider its relationship with the EU. Meanwhile, Ed Gillett, creator of CharterSync, highlighted how Brexit has affected air cargo operations. “Pre-Brexit we could move aircraft without delay; now, with all the paperwork required, it takes 48 hours,” he said.
This change has significant repercussions for just-in-time supply chains, which many businesses rely on for smooth operations. The additional paperwork required now means that items, such as automobile parts, can be delayed, leading to production halts. Jaitej Walia from JT Argo shared similar sentiments, noting that he is considering moving his head office to Ireland to ease business transactions with the EU.
The Rise of the UAE as a Business Hub
In contrast to the issues faced with the EU, the UAE is emerging as a major international business hub. The UAE’s efforts to accommodate foreign businesses are paying off, attracting companies that are seeking a more business-friendly environment.
Dhaval Patel from Universal Partners observed that the UAE is determined to make business operations as smooth as possible. Jaitej Walia was more straightforward, urging for better trade deals with the EU. He stressed that even if a new referendum is not feasible, the UK should at least negotiate improved trade terms with the EU to facilitate easier business dealings.
The Skills Gap and Economic Challenges
Adam Herbert, co-founder of Go Live Data, highlighted the urgent need to close the skills gap in the UK. He pointed out that finding qualified candidates is challenging, and training them takes time. This issue is compounded by Brexit, which has made the UK less attractive to foreign talent, particularly from the EU.
Ed Gillett echoed these concerns, noting a “big bottleneck where recruitment is concerned.” Simon La Fosse added that Brexit has unintentionally discouraged tech company founders from the EU from setting up businesses in the UK. Previously, 40 per cent of tech founders in the UK were from the EU, bringing significant value and employment opportunities to the country. The decrease in foreign talent is making the UK “less competitive.”
Calls for Economic Reforms and Support
Each member of the panel at the E2E event had specific requests for the new government. Ed Gillett hoped for a “free and open market.” Adam Herbert called for “empowerment of small businesses” through tax reductions, such as VAT cuts.
Dhaval Patel also emphasised the importance of lowering business tax rates to attract more foreign investment and retain companies. He mentioned that many clients are considering relocating to the UAE due to the UK’s high taxes. Simon La Fosse stressed the need for a greater focus on economic growth.
Jaitej Walia sought more funding across all sectors, criticising politicians for being out of touch with the challenges faced by businesses and consumers. The panel’s discussions provided ample food for thought, highlighting the need for government action to address the issues exacerbated by Brexit.
The Need for a Better Trade Deal
Jaitej Walia was adamant about the necessity of a better trade deal with the EU. He argued that without improved trading terms, businesses in the UK would continue to struggle. This sentiment was shared by other business leaders who believe that the current arrangements are insufficient.
The call for a better trade deal is not new, but it is gaining urgency as UK businesses face increasing challenges. The leaders at the E2E event believe that a renegotiated deal could alleviate some of the burdens of Brexit.
Conclusion
The panel discussion at the E2E event highlighted the significant impact of Brexit on UK businesses. As industry leaders call for government action and better trade deals, it is clear that the issues are complex and require urgent attention. The discussions provide a stark reminder of the ongoing challenges and the need for solutions that support business growth and economic stability.
As the E2Exchange event highlighted, UK businesses are grappling with significant challenges due to Brexit. The persistent issues of increased paperwork, complex trade regulations, and a shrinking talent pool are causing deep concerns. Leaders are calling for urgent government intervention and improved trade deals. Without these measures, businesses will continue to face difficulties, potentially hampering the UK’s economic growth and global competitiveness.