INKISH.NEWS -

When former Prime Minister David Cameron called the British voters to a referendum about the British membership of the EU, it was, first and foremost, a domestic political project, which most politicians never thought would end with a yes to leave the EU. The vote took place in June 2016, and with only 52% in favor of leaving the Union, media soon started to speculate about why the population voted as they did. Prime Minister after Prime Minister was supposed to work out how the UK could leave EU.

With complex and deeply integrated legislation, it soon became apparent to most that both the British and the Europeans weren't very open-minded to find solutions. Now Brexit is in effect, and the result is devastating for businesses. With the COVID-19 on top, the consequences are supply chains not working, endless lines of trucks awaiting customs, companies closing and moving out of the UK, and worse labor and business loss, particularly on the UK side.

The consequences for the companies working out of the UK into mainland Europe is, according to sources, hopeless delivery times and so many troubles that British-based companies have difficulties supplying their customers. According to a BakerMcKenzie analysis, 45% of the entire British GDP is exported to the EU. The expected decline in, for example, the automobile industry is 16.5%, in the technology segment 8.8%. If this wasn't bad enough, importers are about to face an increase in the cost of 13.1% on automotive, 10% on consumer goods, and 5.1% on technology - so no wonder that this isn't particularly positive.

For small companies, the cost can be even higher.

In the following weeks, we will publish a series of articles about what problems companies on both sides of the Channel face - and hopefully also find some politicians willing to deliver some solutions.

Stay tuned!

Feb 27, 2021

Author: Morten B. Reitoft