11
Accepted
In the run up to the end of the transition period, the government provided a...
Conclusion
In the run up to the end of the transition period, the government provided a range of support to help traders prepare. This included: running a communications campaign across multiple channels; writing directly to businesses to encourage them to get ready; and offering one-to-one support to the 10,000 GB businesses whose trade exceeded £250,000 per annum but had previously only traded with the EU.29 However, we have previously highlighted the contrast in readiness between larger and smaller businesses, including evidence provided to us by the Federation of Small Businesses who found that, in December 2020, only 18% of SMEs that believed they would be negatively impacted by the end of the transition period had finished preparing.30 We heard from Logistics UK that, in their view, smaller businesses had been somewhat forgotten and we questioned departments as to whether this was the case.31 The Cabinet Office told us that departments had focused on SMEs but that there are more of them to reach and they had less capacity to engage.32
Government Response Summary
The government agrees with the committee's observation on challenges for smaller businesses and outlines continued support efforts including guidance, an intermediary register, the Export Support Service, and the future UK Single Trade Window by October 2022.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2022 3.2 Some small and medium sized enterprises (SMEs) have been disproportionately impacted by new border requirements for both imports and exports. SMEs have also raised concerns about the challenge of remaining aware of changing import requirements. In response to this, the government continues to support industry and business in implementing the changes and providing extensive support to adjust to the changes in their customs obligations. Looking to the future, the UK Single Trade Window will put particular emphasis on making it easier for SMEs to begin trading and to do so simply. This will build on support already provided. 3.3 In 2021, the SME Brexit Support Fund offered up to £2,000 per business to help support them with adjustments around customs and VAT rules. In 2022, the government is building on existing mechanisms, with extensive guidance published on GOV.UK, including an intermediary register with a list of over 1,500 intermediaries broken down by client capacity and services offered. 3.4 In 2021, the government, led by Department for International Trade, launched the Export Support Service where UK businesses can get answers to practical questions about exporting to Europe by accessing cross government information and support in one place. The new service brings together well-established government support and helps SMEs navigate existing sources of information. It sits alongside the government’s wider package of support for exporters, helping UK businesses export with more confidence. The government will continue to work with businesses and business representative groups from all sectors, in all parts of the UK, to help make the service as useful as possible for businesses at every stage of their exporting journey.
Source
Committee
Public Accounts Committee
Inquiry
EU Exit: UK Border
Report
Thirty-Sixth Report - EU Exit: UK Border post transition
09 Feb 2022
HC 746
Addressee Bodies
HM Treasury
Timeline
Recommendation age
4.5 yrs
Report published
09 Feb 2022