The referendum for the UK to leave the EU in 2016 divided the country. With a little less than half of us voting to remain, hoping that the wider benefits of being in the European Union, such as improved foreign affairs and security, would sway the other half of us that voted to leave.
Brexit has no doubt had an impact on the businesses in the UK, whether good or bad. If you’ve been hit hard by Brexit and found yourself struggling financially, there are loans available to you if you have exhausted all other options, such as short-term loans, and same day loans. If you want to know how businesses have been impacted by Brexit, read on.
What was Brexit?
In June 2016, The UK voted to leave the European Union. After almost four years of negotiations, the UK left the EU formally in December 2020. One of the main reasons that people voted to leave the European Union was so that the UK could be free of the EU’s customs union and single market. This means that the UK can control its own custom borders, tariffs and even has its own VAT system.
What impact has this had on businesses?
- Trading across the globe – It is argued that Brexit has created advantages for businesses operating in the UK. Leaving the EU means that the UK is free to trade with more non-EU markets like Australia and America, for example. After leaving the European Union, the UK is trying to put new trade deals in place all over the world.
- Authorized Economic Operator – It has allowed businesses to become trusted AEOs. Becoming an AEO can make it easier for businesses to trade with other countries. For businesses to be accepted for this status, it generally depends on compliance and records. If your business does not qualify but trades a lot with countries overseas, you can use a broker or agent for ease.
- Growth opportunities – Leaving the EU means that UK businesses can trade freely with other countries. There are several up-and-coming markets in places such as China and Brazil that are gaining momentum and more consumers with each passing year. The lack of restrictions on the UK now means that you can research other countries that need your products and services, and trade with them more freely and easily, allowing your business to grow.
- Decrease in workers from the EU – Due to the changes in freedom of movement between the UK and other European countries, it is becoming more difficult for sectors to find skilled workers from overseas that are willing to do lower-paid jobs. Businesses are finding that they need to invest in apprenticeships and training, costing them more money.
- Supply chain issues – With the need for more paperwork and compliance, the supply chain between businesses in the EU and in the UK has slowed down. This has not been helped by shortages caused by the pandemic. This has meant shortages all over the country and left businesses unable to sell goods they can’t source.
- Confidence and relations – leaving the EU have caused issues between the UK and the EU relations. Confidence in the UK has been unstable since Brexit and will remain that way for the near future, which could impact the decision of companies overseas choosing to trade with UK businesses.