Administrative costs from Brexit have hurt British businesses with the problem continuing to worsen, a new study by Aston University Business School suggests.
According to the report, UK goods exports to the EU decreased 27% between 2021 and 2023. Imported goods were 32% less than what they would’ve been if Brexit had not taken place. The findings exclude the service sector, which has performed better than experts anticipated.
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Adam Sopher, the co-founder and CEO of Joe & Seph’s Popcorn, said that after Brexit the business was “being asked for vet certificates for caramel popcorn because it contains butter.”
Sopher added that the extra administrative costs were considerable. Before, it used to cost £130($171) per pallet delivery to the EU, now it costs £230-250 ($302-329).
One of the study’s authors relayed that, “while these measures do protect consumers, competition and the environment, they also increasingly bring difficulties and costs for the traders.”
The report stated that its findings “suggest that the transition in UK-EU trade relations post-Brexit is not merely a short-term disruption but reflects deeper structural changes [that are] likely to persist.”
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By GlobalDataStarmer hesitant on Europe
When Prime Minister Keir Starmer was elected, officials in Brussels were hopeful that some former programs could be reestablished fairly swiftly. One of these was the youth mobility program, which Starmer has said will not be reinstated.
Many EU officials have said that this did not sit well in European capitals. An official speaking to POLITICO under anonymity said, “The problem, though, is people are starting to think it’s a bit of a facade because when you move onto specific portfolios—whether that’s youth mobility or Erasmus—the answer is always ‘no.’”
In an interview with The Independent, Starmer said that the UK’s relationship with Europe was at the top of his priorities. He added that “[his administration] is very serious about it” but that there is still “a long way to go”
Still, he reaffirmed his limits: “We have no plans for the youth mobility scheme. I want to be ambitious about the synergy within EU reset. That does not mean going back to the single market, customs union or freedom of movement. So they are the red lines within our framework.”
At the same time, the UK’s economy is facing a tough recovery. Trade Secretary Jonathan Reynolds signed an agreement with Gulf nations on Monday to draw in much-needed foreign investment.
