UK businesses look for international trading opportunities post-Brexit
Britain’s vaccine rollout has triggered a wave of optimism among businesses as they look to new growth opportunities after the pandemic but Brexit concerns still linger.
Business confidence is now at its highest level since the summer of 2018 as the government steps up its efforts to vaccinate the adult population by the summer.
While the pandemic remains the main source of negative impact on business performance over the next 12 months the vaccine rollout is touted as the biggest growth driver.
More than three fifths of businesses are confident about their growth over the next three months, according to Santander’s latest trade barometer.
It is the first survey since the UK’s departure from the EU and while Brexit concerns have fallen to their lowest ever level, 38 per cent of firms say the deal will make trade with the EU more time consuming.
Almost a quarter of UK businesses said higher costs and bureaucracy will prohibit their business from continuing to trade in current markets. It supports figures which showed UK exports to the EU plummeted by 407 per cent in January after the transition period came to an end.
The double whammy of Brexit and the pandemic has meant businesses are shifting their priorities. Despite Brexit costs UK businesses are more minded to consider overseas expansion and North America has overtaken the EU as the region seen as offering best trade prospects.
“While hopes are high for domestic demand fuelling the post-pandemic recovery, there’s also a big opportunity for British firms in overseas markets,” John Carroll, head of international and transactional banking at Santander UK said. “International trade can play an important role in helping UK businesses to emerge from the pandemic successfully and get back to growth.”
The pandemic has presented opportunities for companies that have pivoted to digital with 27 per cent reporting they expect new business to arise from tech.