Brexit: imports and exports to EU drop by almost a third due to red tape damaging Yorkshire businesses
Import and exports between the UK and EU have dropped by almost a third following Brexit, a new study has shown, which is hitting Yorkshire’s small and independent businesses.
The report from Aston University found that in particular agricultural, textiles, clothing and materials firms were being impacted.
Analysis shows there was a 27 per cent drop in exports from Britain to the bloc and a 32 per cent reduction in imports, from 2021 and 2023 compared with the two years before Brexit.
The report also found there was a 33 per cent reduction in the variety of goods exported.
In January 2021, the UK signed the Trade and Cooperation Agreement, which meant the UK formally moved out of the EU.
Businesses have told the Yorkshire Post this has meant a huge increase in red tape, administration and costs when either importing or exporting products with Europe.
Earlier this year, the government introduced additional checks on food and plant goods crossing the border, as well as import fees.
Jo Foster sold her Richmond-based aromatherapy business, Kiss The Moon earlier this year, partly because of Brexit.
The product would include essential oils and natural ingredients imported from France and northern Spain, which Ms Foster said had become increasingly expensive.
She explained: “The sale was a great relief, because it was being impacted by Brexit in ways that were increasingly difficult to manage.”
“Businesses have been on such uncertain footing, you never really knew how the rules were going to change from one day to the next.
“I don’t see how small businesses can become medium-sized businesses anymore.
“Small manufacturing businesses based here in the UK which are trying to grow are no longer competing on a level playing field.”
While Fergus Corrigan, who owns Northern Lavender, the UK’s only lavender farm near Thirsk, said the report shows that the impact of Brexit is actually “worse than what people expected”.
He told the Yorkshire Post: “It’s a loss for consumers as well as businesses, the costs of everything has gone up while the amount and selection has gone down.
The 31-year-old has to import lavender seeds and plants from abroad, and say he’s been hit with a mountain of extra checks, paperwork and costs.
“That cost has to be passed on,” he explained, “every single thing that is bought has an extra cost.”
The report’s lead author, Prof Jun Du, said: “The TCA introduced substantial barriers and there are ongoing and marked declines in the value and variety of UK exports and imports.
“Without urgent policy interventions, the UK’s economic position and place in the global market will continue to weaken.”
Sir Keir Starmer has been touring Europe to try and “reset relations” following Brexit.
He has visited Germany and France, and flew back from Rome after a meeting with Giorgia Meloni on Monday.
Responding to the report, a No10 spokeswoman said: “We’ll be looking at it closely.
“The Prime Minister has said on a few occasions, one of the key aims of his European reset is to make sure Brexit is working better for British people and British businesses.
“That includes breaking down barriers to trade and unlocking opportunities that will help drive economic growth and support businesses in the UK.
“He has been clear that there will be no return to the single market or customs union, or freedom of movement.”