A third of UK businesses want Starmer to cut ‘unimagined’ Brexit red tape

Around a third of UK businesses have urged Sir Keir Starmer to cut post-Brexit red tape in order to support British trade, with campaigners bemoaning “unimagined new layers of bureaucracy”.

A survey, conducted by Santander, found that 31 per cent of companies want to see a reduction in post-Brexit regulatory requirements, including customs procedures, obtaining appropriate licences for trading, and strengthened mutual recognition of professional standards and qualifications across Europe.

Since the UK left the EU in January 2020, the government has put in place a number of trade regulations for overseas goods, including border controls, customs declarations and health certifications.

The UK economy is set to have grown 1.1% this year, the International Monetary Fund has said (John Macdougall/PA) (PA Wire)

Dr Mike Galsworthy, Chairman of the European Movement, told The Independent: “Far from freeing British businesses from red tape, Brexit dumped previously unimagined new layers of bureaucracy onto them.

“Having now experimented with life outside the EU, we can clearly see that it is a far worse place to be for UK businesses compared with membership of the Customs Union and Single Market.

“We can tinker with a few bit of red tape outside Sir Keir Starmer’s red lines, but the real freedom, and the best future for the UK economically, lies in cutting those red lines themselves – and we hope British businesses will join European Movement UK in making those calls.”

However, the Santander survey also found that nearly three quarters (74 per cent) of businesses are confident they will grow in the next three years, while 36 per cent are “very confident” about future growth.

This is compared to just 22 per cent one year ago.

Santander said the latest survey demonstrates a “growing sense of optimism” among small to medium-sized businesses as inflation and its impact starts to reduce.

John Baldwin, Santander’s Corporate & Commercial Banking CEO, said businesses are “looking to the new government to help match their ambition and get more…conquering the globe”.

“SMEs are the lifeblood of the economy and supporting their success at home and abroad will drive both growth in the economy and in jobs”, he added.

Sir Keir has promised a “reset” of relations with the EU, pledging to “make Brexit work” by renegotiating the deal agreed upon by Boris Johnson and the Tories.

Speaking to The Independent on a flight to Washington DC in September, the prime minister said he had put the UK’s relationship with Europe at the top of his agenda since Labour swept to power.

“I’m very serious about it,” he said. “I think that’s clear enough from the work we’ve been doing in the last few weeks since the election.”

The Santander survey was conducted by YouGov between August 12 and September 1. A total of 1,001 UK businesses with minimum £1m annual turnover were consulted.