Brexit uncertainty plaguing SMEs

The National Federation of Builders has called on the government to clarify its vision of the future relationship between the UK and EU.

With less than 300 days to go until Article 50 is enacted, and just weeks left to the crucial European Council summit, the NFB is urging the government to make Brexit work for SMEs. The NFB says businesses are showing concerns that there is no detailed vision of the future relationship between the UK and the EU after March 2019, which is making business difficult.

The Government has published a technical note on the temporary customs arrangements, which will determine the UK’s negotiating position at the summit. The note states that the Government intends the backstop solution on the Irish border, agreed in December 2017 to fully align Northern Ireland with EU rules and avoid a hard border, to be time-limited and expire on 31 December 2021. This development is likely to clash with the EU’s stance on the issue, aimed at making the backstop a more permanent solution in an effort to safeguard the Good Friday Agreement.

With MPs clamouring over the future direction of Brexit, and continual disagreement within and without both political parties and cabinet ministers, the NFB has warned that this is damaging businesses and the economy, particularly in the construction industry.

Richard Beresford, chief executive of the NFB, said: “Currently 77% of products consumed in UK construction are already made in the UK, with some of our most exported products also being the most imported. Therefore, it is crucial that we invest in the capacity of those industries.

“MPs and cabinet ministers need to stop fighting the EU referendum and come together to work out a cross-party approach to Brexit. SMEs and regional contractors across the construction industry need consistency and certainty if they are to grow and succeed after we leave the EU.”

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