Part 1 in a 3 part thought leadership series, where Channel looks at the areas of difficulties that Britain’s SMEs continue to face: increased costs, labour shortages, and logistics.
What are some of these challenges?
Nine months on from the end of the transition period and with the focus on economic recovery from the pandemic, it might seem to some that the issue of Brexit has faded into the background. But for others it is at the forefront of their mind. Headlines reporting driver shortages, 71 pages of additional paperwork and more delays still hit our inboxes and news channels.
Small and medium-sized enterprises (SMEs) continue to be hit simultaneously with Covid and Brexit and the economic impact has started to show. Atradius reported UK international trade collapsed 14.3% y-o-y in March 2021 as the end of the transition period and imposition of a third national lockdown took their toll. Trade between the UK and European Union has dropped to levels unseen since early 2016. So, whilst there may be a lasting effect from the pandemic, Brexit is still evidently playing a large factor in reduced trade.