Small and medium West Yorkshire businesses face 'significant problems' if EU trade deal not reached

Small and medium-sized businesses across West Yorkshire could suffer if the government and the EU fail to agree a trade deal, it is feared.
By David Spereall
Published 14th Dec 2020, 16:29 BST
Updated 14th Dec 2020, 16:32 BST
Talks are ongoing between the EU and the government after Sunday's self-imposed deadline to reach an agreement was extended.Talks are ongoing between the EU and the government after Sunday's self-imposed deadline to reach an agreement was extended.
Talks are ongoing between the EU and the government after Sunday's self-imposed deadline to reach an agreement was extended.

Wakefield Council said on Monday that delays and extra charges on bringing goods into the UK could have a knock-on effect on already struggling firms.

The UK will cease to follow EU rules from New Year's Day, with tariffs set to be applied to goods being purchased from Europe if no deal is struck. Those could be passed on in turn to customers, with food prices already forecast to rise.

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Prime Minister Boris Johnson has said reaching an agreement with the EU is now unlikely, but both sides have given themselves more time to continue talks.

Boris Johnson has said a trade deal is now unlikely to be struck with the EU before the year is out.Boris Johnson has said a trade deal is now unlikely to be struck with the EU before the year is out.
Boris Johnson has said a trade deal is now unlikely to be struck with the EU before the year is out.

Here, Wakefield Council has said it's braced for a huge spike in requests for help from local businesses in the new year, given the likely change in conditions.

Concern has previously been expressed about the impact a no deal will have on businesses along the M62 if ports like Hull become jammed.

Speaking at a scrutiny meeting on Monday, the council's corporate director for economic growth, Tom Stannard said: "If we are in a situation where the government fail, for whatever reason, to come to an agreement with the EU by the end of January, then I'm afraid it's inescapably the fact we'll have tariff barriers and import and export restrictions.

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"That will cause quite significant problems for West Yorkshire and Wakefield specifically."

Mr Stannard said larger companies will be better placed to cope with the changes, but added, "It's the small and medium (SME) companies - manufacturers and retailers within the district - who depend on companies two or three places down their supply chain, who might import into the UK.

"Those companies will be much less well aware and much less prepared and have much less capacity to respond to the increased costs and bureaucracy associated with the prospect of quite significant trading barriers at the beginning of the new year."

The comments follow criticism of the government last month by the Mid Yorkshire Chamber of Commerce, who said local business in Wakefield, Dewsbury and Halifax were unprepared for Brexit.

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Chamber director Martin Hathaway said then that, "There's been so little information that's come out from government over the last 12 months on what needs to be done.

"We need to start making sure businesses have just done the bare minimum that they can."

Local Democracy Reporting Service

Related topics:Wakefield CouncilWest YorkshireBoris JohnsonWakefieldEuropeM62Hull

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