Brexit: UK SMEs beginning to better understand impact

• 56% of business owners feel Brexit has made it more difficult to trade with the EU
• 61% of SMEs had to ‘make arrangements’ to prepare for Brexit
• A third of firms have found it more difficult to access supplies and goods from the EU

LONDON, 17 May 2021: The impact of Brexit is becoming clearer for the UK’s SMEs, according to the latest research* from Close Brothers Asset Finance, with the results showing Britain’s exit from the EU has caused business costs to increase for four in ten UK SMEs – and for a further 56% to express concern about the impact Brexit is having on their firm’s usual trading.

Further results indicate that 39% of respondents’ ability to import goods from the EU had been impacted, while for exports the figure was 33%.

“Brexit continues to resonate around the UK’s business landscape, and will do for the foreseeable future,” said Neil Davies, CEO, of Close Brothers’ Commercial division. “What we’ve found is access to goods and services from, and to, the EU is causing the biggest headaches.

“That being said, many firms don’t have much of a reliance on the EU and have subsequently not felt the same impact as others, meaning it’s a very mixed picture out there, dependent primarily on which sector you’re in.”

Key findings (selected sectors):

Q: Is your business concerned about the impact Brexit is having on your business’s usual trading?

	UK total	Construction	Engineering	Manufacturing	Food and Drink	Transport & Haulage	Wholesale and distribution	Retail	Services
Yes, it is making it more difficult to buy from the EU	23%	28%	41%	20%	14%	16%	31%	25%	13%
Yes, it is making it more difficult to sell to the EU	21%	23%	27%	29%	17%	26%	30%	14%	10%
Yes, it is impacting all areas of trading	12%	9%	10%	14%	18%	15%	11%	16%	7%
No, our trading has not been impacted	33%	30%	19%	33%	39%	38%	23%	33%	42%
N/A we don’t trade	12%	10%	4%	5%	12%	6%	5%	12%	28%

Q: Did you make special arrangements to prepare for Brexit?

	UK total	Construction	Engineering	Manufacturing	Food and Drink	Transport & Haulage	Wholesale and distribution	Retail	Services
Yes, all arrangements were in place in time for Brexit	27%	35%	44%	35%	17%	24%	20%	23%	15%
We made some arrangements	34%	31%	36%	38%	30%	46%	48%	32%	21%
No, we do not require special arrangements	39%	34%	20%	28%	53%	31%	31%	45%	65%

Q: How has your business found accessing supplies and goods from the EU since Brexit?

	UK total	Construction	Engineering	Manufacturing	Food and Drink	Transport & Haulage	Wholesale and distribution	Retail	Services
It’s more complicated / difficult	34%	41%	48%	36%	30%	40%	30%	34%	20%
It’s easier	17%	18%	26%	21%	11%	13%	20%	21%	10%
It’s stayed the same	22%	19%	19%	29%	24%	26%	33%	18%	15%
N/A we don’t access goods and supplies from the EU	27%	23%	8%	15%	35%	22%	17%	27%	55%

Q: Has Brexit had an impact on your firm’s ability to import goods from the EU?

	UK total	Construction	Engineering	Manufacturing	Food and Drink	Transport & Haulage	Wholesale and distribution	Retail	Services
Yes	39%	47%	57%	44%	30%	40%	47%	39%	18%
No	31%	24%	28%	45%	32%	31%	31%	25%	27%
N/A, we don’t import goods from the EU	31%	29%	16%	12%	38%	30%	22%	36%	55%

Q: Has Brexit impacted your firm’s ability to export products to the EU?

	UK total	Construction	Engineering	Manufacturing	Food and Drink	Transport & Haulage	Wholesale and distribution	Retail	Services
Yes	33%	43%	58%	40%	21%	35%	39%	26%	14%
No	28%	18%	23%	46%	21%	33%	31%	28%	19%
N/A, we don’t export products to the EU	39%	40%	20%	14%	58%	32%	30%	46%	67%

The full results of the latest results are available for download on our free-to-use our SME Data Hub.

For a detailed breakdown of the results please contact Anton Nebbe, Head of PR and Communications, 07736 286 144, [email protected].

For more news from Close Brothers Asset Finance, please click here.