A new survey by the British Chambers of Commerce (BCC) has revealed that the majority of small UK businesses are failing to capitalize on the government’s recently signed trade agreements. Despite promises of new global opportunities post-Brexit, most small and medium-sized enterprises (SMEs) reported stagnant or declining exports during the third quarter of the year.
According to the BCC’s Insights Unit, which surveyed 4,600 companies, 84% of businesses with fewer than 10 employees said their export orders had remained flat or fallen. Larger firms performed better, with 42% reporting growth in export orders, but overall business sentiment remained weak. Less than a quarter of respondents saw any increase in export sales or orders.
Post-Brexit Red Tape and Tariffs Blamed
The disappointing figures were attributed to a combination of post-Brexit bureaucracy and US trade restrictions under President Donald Trump’s policies. Many small firms said the added red tape and high costs had made trading with the EU and the US increasingly difficult.
One small business owner from the west of England commented, “We lost our markets due to Brexit, and trading with the US is now very hard and expensive because of tariffs and uncertainty.”
The World Trade Organization (WTO) also warned last week that the UK’s trade contribution to GDP growth had “stagnated” since the pandemic. It noted that exports to the EU from UK-based SMEs fell by 30% after Brexit, with 16,400 small firms ceasing EU exports entirely.
Calls for Government Support Amid Department Cuts
William Bain, head of trade policy at the BCC, described the findings as “deeply concerning,” emphasizing that a 2% rise in exports could boost the UK’s long-term GDP growth by 0.6%. He urged the government to provide greater assistance to smaller exporters to help them benefit from the new trade deals with the US, EU, and India.
However, concerns have grown after reports that the Department for Business and Trade (DBT) is implementing 20% budget cuts, including reductions in export promotion staff and a shift to online-only consultations to reduce costs. One insider said morale within the department was “very low.”
Digitization and Finance Access Key to Growth
Chris Southworth, secretary-general of the International Chamber of Commerce UK, called for faster digitization of trade processes and improved access to affordable trade finance. He argued that the UK’s outdated systems and financing gaps were disproportionately harming SMEs.
In response, trade minister Sir Chris Bryant said the government had expanded the lending capacity of UK Export Finance from £60bn to £80bn to help small exporters and emphasized that “boosting exports is great for productivity, jobs, and economic growth.”
As International Trade Week begins, the BCC and industry leaders are urging the government to match its ambitious trade rhetoric with concrete measures that empower small businesses to thrive in global markets.
