Brexit and red tape impacting firms

1 min read

Make UK, the industry body that represents 20,000 manufacturers in the UK, has warned that a combination of Brexit custom delays and red tape is adding to business costs and creating a more challenging business environment for firms

According to a new survey conducted by the industry body, two thirds of businesses said that Brexit had moderately or significantly hampered their business, with over 50 per cent expecting further damage this year.

Delays at customs, the additional costs of separate regulatory regimes and reduced access to migrant labour were found to be manufacturers’ top concerns.

However, Make UK also found that most companies expected conditions in manufacturing to improve over the coming 12 months, with 73 per cent saying that they thought opportunities for their business far outweighed the risks.

And while confidence has certainly been knocked by Brexit and COVID, Make UK’s survey found that two thirds of companies thought the UK remained a competitive location for manufacturers and a record number said they were planning significant investment on 2022.

In fact a growing number of businesses are looking to re-shore activity as many look beyond the just-in-time business model that has dominated business for the past 30 years.