Many small businesses have struggled to adapt to new customs checks paperwork, and regulatory requirements, which have cost them time, money, and market competitiveness.
After years of post-Brexit disruption, two-thirds of small and medium-sized businesses (SMEs) say they would now vote to remain in the EU, according to a new study by research agency, Critical Research. The survey of over 500 importers and exporters found that 66 percent would back Remain, up from 53 percent in the 2016 referendum. 29 percent would now vote to leave, down from 32 percent.
The shift echoes the small business frustration with the increased bureaucracy and trade barriers that have followed Britain’s departure from the EU. Many small firms have struggled to adapt to new customs checks paperwork, and regulatory requirements, which have cost them time, money, and market competitiveness.
A 2022 report by the British Chambers of Commerce (BCC) described businesses as “banging their heads against the wall” over Brexit red tape. It confirmed that companies were wrestling with EU trading rules. At the same time, the Centre for European Reform estimated Brexit has cut UK trade by around 7 percent.
Critical Research’s analysis confirms that several years later, similar concerns persist. It found 65 percent of businesses say post-Brexit regulations have significantly reduced their profits, and 56 percent report being less competitive globally.
Finance firm Bibby Financial Services commented that the recent reset talks between Keir Starmer and the EU may offer some relief.
“The recent agreement secured with the EU, which seeks to reduce the red tape and increase the flow of trade, won’t mean a return to the single market but may go some way to addressing the administrative and cost burden for business. Time will tell,” read the company’s report.
The same report showed that importers or exporters looking for new partners this year were currently considering China and the US as their top target markets.
Responding to Critical Research’s analysis, readers didn’t mince their words:
“And that’s after a third of UK businesses that used to trade with the EU were wiped out by Brexit red tape in the first two years after we left the EU. I’m sure they would vote ‘remain’ too if they still existed,” was one comment.
“If only someone had told them about the damage leaving the EU would do before we left eh? The greatest act of self-harm in history… until the same fools vote for Reform,” was another.
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