12 Accepted

We heard from witnesses; in written submissions; and from cases in our own constituencies about...

Conclusion
We heard from witnesses; in written submissions; and from cases in our own constituencies about some of the particular issues that smaller businesses have faced as they try to get to grips with new requirements. For example, ADS, which represents the UK’s aerospace, defence, security, and space industries, 95% of whose members are SMEs, told us that one of the main consequences its members had reported was the increasing time and cost associated with moving goods, which it said was ultimately harming UK competitiveness.33 HMRC told us it had opened up a grant scheme for small businesses so that they could get up to £2,000 for support including training staff.34 However, we note that only £6.7 million of the £20 million that was available was paid out, and that stakeholders representing smaller businesses have reported that the criteria limited the businesses that could benefit.35 HMRC told us that it had to make sure that the scheme gave value for money and was targeted at businesses who were not familiar with customs.36
Government Response Summary
The government acknowledges the challenges for SMEs and describes ongoing support through guidance, an intermediary register, the Export Support Service, and the future UK Single Trade Window by October 2022, building on the past SME Brexit Support Fund.
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.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 4.5 yrs
Report published 09 Feb 2022