British companies dissatisfied with the Brexit destructive outcomes

What do the polls show about the profit and loss of British companies in the post-Brexit period?

What is the reason for the post-Brexit disputes between London and Brussels after the Brexit?

After the Brexit, why did foreign companies leave the UK and move their offices to EU countries?

How has the rise of bureaucracy in the post-Brexit period affected UK-EU trade relations?

The latest survey results show that the Brexit trade agreement between London and Brussels has benefited only a small number of British exporting companies and has been unprofitable for most of them.

Post-Brexit disputes in London and Brussels

In a referendum held in June 2016, 52% of British citizens voted to leave the EU. Thus, the UK became the first country after more than 40 years of membership in the EU to leave the bloc. UK’s complete withdrawal from the EU took place on 31 January 2020. Contrary to government promises, however, the post-Brexit period was not good for the country, especially in the economic sector, and the controversy between Brussels and London continued during this period.

British problems in exporting goods to Northern Ireland

Following its withdrawal from the EU and the region’s single market, the UK has faced severe difficulties in sending goods to Northern Ireland, which is part of the country but subject to EU trade law, and has repeatedly called for a renegotiation of the Northern Ireland Protocol. But the EU strongly opposes London’s proposal and calls for adherence to the agreements reached in the Bargaining Agreement.

Loss of British companies from Brexit

The latest poll results show that out of every eight British exporting companies, only one has benefited from a British trade agreement with the EU. In a British Chambers of Commerce (BCC) poll, only 12% of exporting companies said the deal helped them grow their business. 71% did not have such an opinion. More than 1,100 entrepreneurs surveyed said higher costs, more bureaucracy and delays put the UK in a worse competitive position. 

William Bain, head of trade policy at the BCC, stressed that almost all of the companies in the survey have less than 250 employees and that it is the smaller companies that feel the newest obstacles through the Brexit trade agreement. According to him, these companies do not have enough time, money and personnel to pay these additional costs.

Withdrawal of foreign companies from the UK

The Brexit and the resulting restrictions led many foreign companies to move their headquarters to one of the 27 EU member states. Meanwhile, British media recently reported that Amazon had transferred £8.2bn in sales from the UK to Luxembourg. Governments worldwide have sought to encourage high-income companies such as Amazon to operate in their own country by cutting taxes, and it is now clear that Amazon has relocated some of its operations and assets from the UK to Luxembourg to pay lower taxes.

Labor crisis in the post-Brexit period

Another consequence of Brexit is its impact on the immigration process, which has slowed its rate in the UK and doubled employers’ problems in need of labour. According to the announced statistics, in the second half of 2016, the level of access of UK employers to those who are eligible for employment for various job positions followed the fastest declining trend. This increased the number of job vacancies required by British society. As a result, employers faced labour shortages in at least 60 jobs. After the UK withdrew from the EU, trade and commerce between the UK and other EU countries deteriorated, causing great concern to British and non-British business people, which exacerbated the labour crisis in the country.

The sharp increase in bureaucracy in the post-Brexit period

Following the UK withdrawal from the EU, British companies struggled with border problems resulting from the withdrawal, including increased paperwork and severe bureaucracy. Michael Gove, a senior British government official, acknowledged a “significant disruption” at the border due to increased bureaucracy, which slows down transport and makes it especially difficult to maintain fresh produce. Under the Brexit trade agreement, British exporters now face costly and time-consuming paperwork, including customs declarations, food safety oversight checks and “rules of origin” levies.

British problems in the supply chain of goods and services

These problems come as the supply chain of goods and services experiences major problems as traffic slows down across the British border, especially at the Port of Dover. European countries were trying to curb the Covid-19 in the UK. Logistics companies are now trying to break their dependence on the Port of Dover. They make longer trips to Ireland, for example, so as not to leave the EU and bypass the UK. 

Changes in transportation routes began at the Brexit referendum in 2016, with goods increasingly being transported to the UK’s eastern ports by rail. At the same time, UK registered trucks are only allowed to stop in the EU to unload their goods, also plunged the music concert tour industry into crisis.

Delays in the exchange of goods and services with the EU

Research by the manufacturing trade group Make UK shows that 74% of leading and large British companies face delays in exchanging goods and services with EU markets after leaving the EU. The survey shows that more than half of British companies have complained about the rising costs of disrupting global trade due to the Covid-19 epidemic, Brexit and customs inspections. In addition, more than a third of commercial companies have lost their sales, and fears that this situation will continue have led to a downturn in their business.

The British Chambers of Commerce has called on the UK government to engage in further negotiations with the EU for more straightforward controls and more accessible rules, especially in the food sector. The BCC believes that, in addition, British companies need more support to meet the new challenges. The last-minute trade agreement reached between Brussels and London has been in force for about a year, during which time trade between the EU and the UK has become significantly more complex and declining.