Almost 60% of exporting UK businesses see no positive effect from post-Brexit trade deals according to a new Government report. Three in 10 service firms, and more than four in 10 goods businesses, say their exports have decreased, with the UK leaving the European Union the most commonly cited reason.
The findings are from the National Survey of Registered Businesses (NSRB), commissioned by the Department for Business and Trade (DBT) to monitor exporting behaviours, plans, capabilities, and attitudes of businesses across the UK. The report said: “Concerns relating to the UK’s exit from the EU continued to be prominent. This included concerns about demand for UK products and services, supply chain issues, customs procedures, documentation, and administrative burdens.”
The latest survey collected data from 3,001 businesses, the primary focus on those with a turnover of at least £500,000 though smaller businesses were included in the total sample.
As a proportion of all businesses, 13% stated that they had exported only goods in the last 12 months (11% of businesses below £500,000, 19% of businesses £500,000 and above), 12% had exported only services (13% of businesses below £500,000, 9% of businesses £500,000 and above) and 4% had exported both goods and services (3% of businesses below £500,000, 6% of businesses £500,000 and above). Those businesses that had exported goods in the past 12 months (excluding exports to Republic of Ireland) were more likely to report a reduction in exports in the last year (41%) than an increase (23%). Among those exporting services (excluding exports to Republic of Ireland), the proportion was much more even with the same proportion stating that they had increased (32%) or decreased (32%).
Of the businesses that had stopped exporting or reduced exporting over the previous 12 months, EU Exit (53%) Covid-19 (20%) and reduced demand (18%) were the most common reasons given for this. All other factors cited were below 10%.
Almost 6 in 10 of the total business sample expected negotiated free trade agreements (FTAs) to have no effect on their business (56%). Just under a third (31%) felt they would have a positive effect and 4% believed that they would have a negative effect.
Just over 4 in 10 (42%) businesses believed UK exports would increase over the next 5 years, compared with 29% over the next 12 months.
