BCC warns red tape, rising costs and regulation ‘holding back exports’

A survey of nearly 650 UK businesses carried out by the British Chambers of Commerce (BCC) has found that red tape, rising costs and increasing regulation are holding back exports.

49% of firms polled stated that current customs checks and declarations present ‘barriers to exporting’. An additional 40% of businesses said taxes and duties are other areas of concern.

Regulation, such as product certification, causes problems for 38% of small firms, the BCC found.

Commenting on the data, William Bain, Head of Trade Policy at the BCC, said: ‘Our findings highlight the key priorities for business that could make a difference when it comes to UK trade negotiations and other related policy developments. 

‘What they want to see are faster customs processes, removal of non-tariff regulatory barriers, tariff reductions where these could make a difference, fewer hoops to jump through and greater certainty.

‘With the UK government involved in trade negotiations with so many countries right now, including India, South Korea, Canada and Mexico, these findings are a timely reminder of the important issues.’

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IoD survey finds UK businesses anticipate growth in exports

A survey carried out by the Institute of Directors (IoD) has found that 42% of UK businesses that trade internationally expect to see an increase in their exports over the coming year.

The survey also revealed that 47% of businesses are still finding Brexit challenging, and just 33% envisage opportunities materialising as a result of Brexit.

Additionally, 28% of firms reported that supply chain disruption has had a negative impact on their business, and 12% have an exportable product but aren’t currently exporting.

Commenting on the findings, Emma Rowland, Policy Adviser for Trade at the IoD, said: ‘There is no doubt that smaller businesses in particular are finding the current international trading environment challenging. Importers and exporters feel especially constricted by the UK’s new trading relationship with the EU.

‘It is therefore encouraging that, in spite of these barriers, businesses are anticipating an increase in exports over the coming months. There are opportunities that give traders reason to be optimistic.’

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Delayed EU import declarations due

The first supplementary delayed declarations on imports of non-controlled goods from the EU are due from 25 June 2021, HMRC has reminded businesses.

Businesses that made imports from 1 January this year were able to use delayed declarations instead of declaring their goods to HMRC at the time they had imported them. Supplementary declarations need to be made within 175 days, so imports made in January will become due from 25 June onwards.

HMRC said: ‘You should check the date when you imported your goods and add on 175 calendar days from that date to get the deadline for when your supplementary declaration is due.

‘If you’re delaying your declarations and planning to make the supplementary declarations yourself, you will need a Duty Deferment Account (DDA). You need to apply to HMRC for a DDA. It allows you to make one payment each month for any imports, rather than paying every time you import goods, which can be helpful in managing your cashflow.

‘Even if someone else is doing your declarations, such as a freight forwarder, customs agent or fast parcel operator, most will require you to have your own DDA. You should check this with them if they haven’t already advised you to set one up.’

Applications for a DDA can be made here.

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FSB urges government to provide greater support for UK exports

The Federation of Small Businesses (FSB) has urged the government to act in order to support small businesses exporting to the EU.

The latest figures published by the Office for National Statistics (ONS) showed that UK GDP and total exports fell by 7.8% and 10.3% respectively in February 2021 when compared to February 2020.

The FSB found that UK exports have ‘tumbled’ since the end of the Brexit transition period, and that a fifth of small exporters have halted sales to the EU. The business group is calling for further action to be taken to help ‘alleviate the new admin facing exporters’.

Mike Cherry, National Chairman of the FSB, said: ‘If you’d asked small business owners at this time last year about COVID-linked disruption they wouldn’t have dreamed it would be continuing so far into the future.

‘These stark figures are a reminder that this lockdown needs to be the last: better to unlock more slowly than to rush and have a repeat of the damaging chaos suffered in the run-up to last year’s critical festive trading season.

‘The government should now turn to its build back better agenda: cutting the non-wage costs of employment to spur hiring, ending a debilitating late payment crisis that has worsened through lockdowns and taking innovative approaches to emergency debt to realise meaningful economic value.’

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SME Brexit Support Fund

The SME Brexit Support Fund could give you up to £2,000 to help with training or professional advice, if your business has up to 500 employees and no more than £100 million annual turnover.

The UK government has unveiled a £20 million Brexit support package to help small and medium-sized enterprises (SMEs) with changes to trade rules with the EU.

The SME Brexit Support Fund aims to help businesses prepare for the implementation of import controls which come into force from April and July.

What you’ll be able to use the grant for

You can use the grant for training on:

• how to complete customs declarations
• how to manage customs processes and use customs software and systems
• specific import and export related aspects including VAT, excise and rules of origin

It can be used to help you get professional advice so your business can meet its customs, excise, import VAT or safety and security declaration requirements.

Who will be able to apply

Your business must:

• be established in the UK
• have been established in the UK for at least 12 months before submitting the application, or currently hold Authorised Economic Operator status
• not have previously failed to meet its tax or customs obligations
• have no more than 500 employees
• have no more than £100 million turnover
• import or export goods between Great Britain and the EU, or moves goods between Great Britain and Northern Ireland

Your business must also either:

• complete (or intend to complete) import or export declarations internally for its own goods
• use someone else to complete import or export declarations but requires additional capability internally to effectively import or export (such as advice on rules of origin or advice on dealing with a supply chain)

How to apply

PwC is administering the grants for HMRC and you can apply inline through PwC HERE.

PLEASE NOTE: Applications will close on 30 June 2021 or earlier if all funding is allocated before this date.

How we can help

For more information regarding the application process do not hesitate to call a member of our dedicated team on 01753 888211 or email info@nhllp.com

Alternatively, visit our website at www.nhllp.com

HMRC urges businesses to ensure they are ready for new customs and tax rules

HMRC has urged businesses to make sure they are prepared for new customs and tax rules so that they can continue to trade with the EU from 1 January 2021.

In a letter to VAT-registered businesses, HMRC stated that it is ‘really important’ that firms act now. Businesses will not be able to trade with the EU from 1 January 2021 if they do not have the correct processes, contracts and agreements in place.

Businesses will need to make import and export declarations to move goods between the UK and the EU. From 1 January 2021, if firms send goods from the UK to customers in the EU, they will be responsible for completing export declarations for those goods. If businesses import goods from the EU that are on the controlled goods list (such as animal products, alcohol or tobacco or firearms), they will have to make declarations from 1 January 2021.

Business Secretary Alok Sharma said: ‘Businesses must act now to ensure they are ready for the UK’s new start as an independent trading nation once more.

‘There will be no extension to the transition period, so there is no time to waste.’

The letter can be viewed in full here.

For more information, as ever, visit our website: http://www.nhllp.com or contact us on: 01494 888211

SME manufacturing activity plummets, says CBI

SME manufacturing output volumes fell at the fastest rate on record, according to the latest quarterly Confederation of British Industry (CBI) SME Trends Survey.

The survey of 331 small and medium-sized enterprise (SME) manufacturers reported that output volumes were down by 53% in the three months to July, the worst quarter since October 1988.

In addition, total new orders in the three months to July were down 56%, the quickest pace on record, reflected in the fastest falls on record in both domestic and export orders.

However, business sentiment in the quarter to July improved slightly, following its record pace of decline in April, while firms expect output to recover at a slow pace in the next three months.

Commenting on the figures, Alpesh Paleja, Lead Economist at the CBI, said: ‘SME manufacturers faced an exceptionally challenging quarter due to the coronavirus (COVID-19) crisis. While firms believe that the worst of the downturn is behind them, ongoing cashflow issues and tough trading conditions mean that they aren’t back on their feet yet. Expectations of another heavy fall in headcounts is a sign of what is to come.

‘It’s clear that firms need more immediate support, from grants to further business rates relief, to tide them over until demand conditions improve more substantially.’

Significant rise in manufacturing exports, survey reveals

Significant rise in manufacturing exports, survey reveals – Article Gerrards Cross : Nunn Hayward

The depreciation in sterling has contributed to a significant rise in manufacturing exports, a survey by the Confederation of British Industry (CBI) has revealed.

The CBI’s latest Industrial Trends Survey showed that, in the three months to October, export volumes grew at their fastest pace for two and a half years.

The survey also indicated that competitiveness within EU markets rose at its fastest rate since 2000.

However, 47% of manufacturers revealed that the sharp depreciation in sterling has had a negative impact on their business, with just 32% stating that it has had a positive impact.

Concerns have also been raised over the shortage of skilled labour, with nearly a quarter of manufacturers stating that the reduced availability of such labour could limit output over the coming months.

Rain Newton-Smith, Chief Economist at the CBI, commented: ‘Firms will be seeking further details on a long-term industrial strategy from the Autumn Statement that combines sectors and places.

‘Ultimately, all businesses need greater clarity from the Government on the fundamental issues of skills and barrier-free access to EU markets as soon as possible.’

SME growth remains steady despite weak exports

The Confederation of British Industry (CBI) has announced the growth rates among SMEs in the three months to July.

According to a CBI survey of 408 companies, the UK’s manufacturers saw a steady growth in domestic orders, in line with expectations, improving reported business optimism for that quarter.

Concerns were raised over the reported dip in exportation, with export prices continuing to fall at the fastest pace since 2003.

Anna Leach, Head of Economic Analysis at the CBI, said: ‘Optimism among smaller manufacturers improved this quarter, alongside steady employment growth, rising output and new domestic orders.

‘But the relative strength of the Pound against the Euro is hitting export orders and margins, while uncertainty regarding Greece threatens growth prospects in the Eurozone’.

Only 18% of companies said their export numbers were up during the quarter, with 26% reporting a decrease. Spending on plant and machinery is not expected to change, while firms are planning to spend less on buildings over the next 12 months.

Overall growth in employment, training and innovation remained steady, as companies expand their workforces and reach following the reported economic recovery.

Business group makes pre-Second Budget submission

The Federation of Small Businesses (FSB) has announced their recommendations for the Second Budget 2015, calling on the Chancellor George Osborne to secure small business growth in the coming year.

John Allan, National Chairman for the FSB, said: ‘The UK’s small businesses are reporting record high levels of confidence. Unemployment is continuing to drop, UK wage growth is at a four year high and there are encouraging indications that productivity is finally on the rise.

‘The Budget is an early opportunity to provide a boost to the increasing positive sentiment, and for the Chancellor to demonstrate his pro-enterprise credentials by again backing small business to deliver the growth and jobs the economy needs.’

Included in the FSB’s recommendations are calls to:

Tax reform – Widen the scope of reform to radically simplify the system and improve incentives to encourage investment.

Raising skills – Support the creation of business-led apprentices, and promote apprenticeships as an equally valued alternative to academic study amongst schools and young people.

Exports – Continue the Government’s ambition to raise UK exports to £1 trillion by 2020.

Access to finance – Increase competition in the business banking market, improve credit data sharing, and consider incentives such as credit ‘passports’.

Construction – Encourage small construction firms back into the house building industry to enable growth outside of the South East.

Universities – Raise the Higher Education Innovation Funding by £90 million to a total of £250 million.