REPORT: BREXIT BEGINS
http://www.insider.co.uk March 2020 INSIDER 27By KEN SYMON
A
S WE move towards
the departure of the
United Kingdom from
the European Union
becoming a reality businesses are
heightening their own preparations.
Survey evidence suggests that most
businesses are putting plans in place
to seek growth post-Brexit, although
anecdotally there are many who have
so far done little.
What is at stake is very significant.
Scotland exported £17.2bn in goods
to the EU in the year up to September
2019, compared to £17.1bn to non-
EU markets. The Institute of Export
& International Trade warns that
failure to comply with new rules and
regulations risks delays at the border,
goods being impounded, reputational
damage, hefty fines and in the worst
cases, imprisonment.
The latest UK-wide figures suggest
that existing exporters were merely
treading water during the final
quarter of 2019. A British Chambersof Commerce survey of 3,300
exporters showed manufacturing
export orders weakening for the
second quarter and indications that
the service sector also decreased over
the period.
Adam Marshall, the director
general of the British Chambers
of Commerce, said: “The evidencesuggests that exporters are still
suffering from the impacts of both
Brexit uncertainty and weaker
global trade. Our key indicators
for export orders and sales, both in
manufacturing and services, declined
sharply over the course of 2019, and
remain significantly lower than the
previous year.
“We may have greater politicalcertainty at Westminster, but this
must now translate into clarity on the
future trading relationship with the
EU and other partners around
the world.”
There have been some brighter
spots on exports with figures from
the Scotch Whisky Association
compiled from HMRC export data
which showed a rise of 4.4 per cent
to £4.91bn over 2019, with growth
in more than 106 of its export
markets. Export growth was driven
in particular in Asia and Africa, with
value increases of 9.8 per cent and
11.3 per cent respectively.
There are sectors where there
is little change as yet from Brexit
including financial services. Marion
MacInnes, a partner in banking
and finance with Brodies, says:
“It remains, at least for the short
term, business as usual for the UK’s
financial services sector.
“The full extent of the impact of
Brexit on the UK’s financial services
regulatory landscape remains to be
seen and much will depend on theThings like holiday pay and parental
leave could change, which will have a
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OF SPLIT FROM EU