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Brexit causing ‘increased costs, paperwork, delays’ say MPs

Business / Wed 9th Feb 2022 at 12:32pm

UK firms have been hit by “increased costs, paperwork and border delays” as a result of Brexit, MPs have said reports BBC.

A report from parliament’s spending watchdog, the Public Accounts Committee (PAC), said it “was clear” that leaving the EU was having an impact on UK trade volumes.

It also warned things could worsen this year as new import controls come in.

The government said it continued to ensure businesses “got the support they need to trade effectively with Europe”.

“One of the great promises of Brexit was freeing British businesses to give them the headroom to maximise their productivity and contribution to the economy – even more desperately needed now on the long road to recovery from the pandemic,” said PAC chair Meg Hillier. 

“Yet the only detectable impact so far is increased costs, paperwork and border delays.”

While it was hard to disentangle the impact of Brexit from the effects of Covid and wider global problems it was “clear that EU exit has had an impact” on UK trade volumes, the committee said.

The report comes as Jacob Rees-Mogg has been appointed minister for Brexit opportunities as part of a cabinet reshuffle. The prominent Leave campaigner will look at which EU rules may be scrapped now the UK has left the bloc.

In its report, the Public Accounts Committee (PAC) said it was concerned about what will happen when passenger traffic across the UK border returns to normal levels as the pandemic subsides. 

And it described government plans to create the most effective border in the world by 2025 as “optimistic, given where things stand today”.

Mary Quicke, an artisan cheesemaker based in Devon said the committee’s findings tallied with her experiences.

“There are just all of these barriers to doing what used to be really, really simple which was agreeing to make a sale and then calling the haulier and off it went and you got paid,” she told Radio 5 Live.

She says she hasn’t yet seen the new opportunities she hoped for after Brexit.

And she worries that clients in the EU will stop taking her products if the problems continue.

“Of course they want our cheese, but how long do you carry on doing something you want when it’s really tedious and costly and you get charged much more money?”

The report says trade volumes have been suppressed by the impact of Covid-19, and wider global pressures in supply chains, since the UK left the EU customs union and single market. 

But it is clear, the report adds, that leaving the EU also had an impact by increasing the bureaucratic burden on businesses.

3 Comments for Brexit causing ‘increased costs, paperwork, delays’ say MPs:

John Davis
2022-02-09 14:01:39

"Vote Leave to cut red tape". Remember that? How about "We need to leave the EU to cut bureaucracy and red tape". - Nigel Farage. Or Farage again: "Outside the EU, Great Britain would not only survive but thrive, and become a beacon of hope for other countries too." - Daily Express July 18, 2015. Then Nigel Farage: "I never said it would be a beneficial thing to leave and everyone would be better off." - LBC May 29 2018. A rightwing nationalist fanatic, who kept HIS EU rights, hurriedly changing his tune, trying not to be held to account. Your Brexit rewards? Higher prices and lost business meaning lost taxes. £80 billion a year in lost taxes due to Brexit are the government's own figures, but only £12 billion a year clawed back in National Insurance rise. Taxes must go much higher or cuts in public services and austerity are guaranteed. What's more, every single region, except Cornwall, will receive less money from the Tories than they received from the EU. Levelling down then. Your petrol and energy bills all higher than otherwise because of the Brexit fall in the value of the pound, along with your food costs. Big imports you see. Remember that as the bills pile up. Harlow voted heavily to leave the EU. Warnings were called Project Fear. Easy to throw a sneering slogan around wasn't it. But it's not all bad news. One business has really taken off since the referendum. Foodbanks - the biggest Brexit Bonus business is up 128% since then. So some business growth is boosted by Brexit. Here's a new three word slogan for The Clown: Build Bigger (Food)Banks. You're gonna need them.

Bravo
2022-02-09 16:30:11

John 100% agree. Stiupid people voted for Brexit and the one that are easy to manipulate, lets be honest.Its very sad to see how we have to struggle now and where our country is going to.

JD
2022-02-09 18:24:36

Good News Brexiters! All those who voted Leave must now be rejoicing that "Man Of The People" Jacob Rees-Mogg has been appointed Minister for Brexit Opportunities. Perhaps one of "Common Man" Rees-Mogg's footmen can find some good in this mess. Maybe Rees-Mogg's nanny can find the £350M a week that was going to go to the NHS so there doesn't need to be a tax raise this year. Or maybe nanny can explain why the £350M a week can't go to reducing VAT on fuel as was promised. https://www.independent.co.uk/news/uk/politics/jacob-rees-mogg-conflict-of-interest-brexit-opportunities-job-b2011511.html

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