Mark Carney, the Governor of The Bank of England, has revealed that 150,000 UK businesses do not have the correct paperwork to continue exporting into the EU in the event of a no-deal Brexit.
The revelation comes as Conservative leadership elections leave Boris Johnson and Jeremy Hunt competing to become the next Prime Minister. Both have publicly stated that keeping no-deal on the table during negotiations is essential, meaning no-deal preparations should now be a necessity for all UK businesses.
Businesses exporting into the EU will be “reliant on what the government does to keep the ports open and the trade flowing,” according to Carney. However, any businesses exporting into the EU currently, must at the very least get their paperwork in place otherwise their products could be turned away at the ports in a no-deal scenario.
Potential trouble lies ahead for importers too in the event of a no-deal Brexit. HMRC launched the Transitional Simplified Procedures scheme in February to help imports into the UK in the event of a sudden exit of the customs union and single market. By May, It had been revealed that only 17,800 firms have applied for the scheme out of the predicted 240,000 firms calculated to require the status.
Jade Greenhow, Operations Director at Insight Data comments:
“EU exporters and importers need to get their ducks in a row and get seriously prepared for a no-deal Brexit. Suppliers into the fenestration industry who rely on their products coming from the EU need to ensure they have TSP status, whilst exporters must get their paperwork in order sooner rather than later.
“In uncertain political and economic times, preparation is absolutely key. Making sure that no matter what the outcome of Brexit is, you have your documentation in place, a strong, relentless marketing strategy ongoing and an efficient sales pipeline ready is the key to continuing to succeed, despite the uncertainty.”
Insight Data are the industry’s trusted provider of prospect data and live market intelligence. Their sales and marketing platform Salestracker, allows users to connect with over 70,000 potential customers across both the fenestration and wider construction industries. The platform, which includes a prospect database, CRM system and integrated email marketing system, also gives users unrivalled insight into the current industry landscape, allowing businesses to assess multiple markets and identify potential growth areas.