A surge in skepticism among British businesses about the advantages of post-Brexit free trade deals has been unveiled through a recent study conducted by the UK Department for Business and Trade. The survey, encompassing a wide array of over 3,000 enterprises, illustrates that an increasing 58 percent of them now hold the belief that these trade accords will fail to yield any positive impact on their operations. This percentage has seen a rise from the previous year’s 54 percent, indicating a mounting disillusionment with the anticipated benefits arising from these deals, despite the government’s assertions of bolstering the concept of “global Britain.”
Conversely, a mere 31 percent of the surveyed companies perceive trade deals as advantageous, marking a decline from the prior year’s figure of 33 percent. This waning optimism resonates with the broader public sentiment, as current polling indicates that a significant majority of voters, encompassing 61 percent, harbor negative views about the repercussions of Brexit on the UK economy, viewing it as a catalyst for an unfavorable trajectory.
The survey also underscores persistent concerns among British firms regarding post-Brexit hurdles, such as bureaucratic entanglements and disruptions within supply chains. It is noteworthy that demand for UK goods and services has regressed from the robust 73 percent recorded in 2017 to a modest 55 percent in the most recent findings. Additionally, 49 percent of enterprises acknowledged a decrease in demand for their offerings since the transition period following Brexit—a notable increase from the 39 percent reported in the preceding survey.
Leaders in the industry are echoing these sentiments. William Bain, trade policy head at the British Chambers of Commerce, has recognized the tangible discontent prevailing among businesses. Tina McKenzie, representing the Federation of Small Businesses, has emphasized the urgency for the government to streamline post-Brexit regulations in order to alleviate the concerns plaguing the business landscape.
While the survey accentuates the prevailing air of pessimism, it also provides a glimpse of optimism on the horizon. The portion of companies identifying substantial opportunities for international expansion has ascended to 58 percent, reflecting an upswing from the prior year’s figure of 52 percent.
In response, the Department for Business and Trade has sought to counterbalance these findings, underscoring that UK exports reached a formidable £852 billion in the year concluding in June. Furthermore, they are anticipating reaping the fruits of recently forged trade agreements with Australia and New Zealand in the near future.
Amidst this evolving scenario, concerns pertaining to Brexit-associated border checks on consumable goods have induced further delays. These apprehensions have prompted the government to extend the timeline yet again, reflecting worries about potential inflationary pressures. As a climate of uncertainty persists, small businesses remain in a state of anticipation for official clarifications from the government, enabling them to chart a more informed course forward. This dynamic public sentiment finds resonance in the growing support for a second Brexit referendum, with nearly half of Britons now favoring such a prospect within the upcoming decade, as discerned from a recent YouGov survey.