ONS trade figures show businesses need help to bounce back from Covid and end of transition period

UK exports to the EU saw a partial recovery in February 2021 but remain well below the same month last year, the latest ONS figures have revealed.

The ONS also reports that evidence from the Business Insights and Conditions Survey (BICS) suggested that “additional paperwork and higher transportation costs were the biggest challenges facing UK importers and exporters in February, which most businesses attribute to leaving the transition period.”

Hilary Benn MP, co-convenor of the new UK Trade and Business Commission, said:

“These figures show a recovery in trade with the EU compared to the previous month, but exports to the continent still remain well below the levels seen last year.

"More analysis is now needed to distinguish between the short-term impact of the coronavirus and the longer term challenges posed by the end of the transition period.

"Our cross-party trade commission will be looking in depth at this issue as we develop practical proposals to help businesses bounce back from the effects of new trade rules and the pandemic.

“We know many smaller businesses are struggling to adapt to the end of the transition period as they face extra costs and bureaucracy. The Government should respond to the concerns of the businesses and communities affected and work to improve the current EU-UK agreement."

NOTES TO EDITORS

For interview requests, please contact Paul Haydon on 07988395025, paul.haydon@bestforbritain.org 

Today's figures from the Office for National Statistics can be found here. UK exports to the EU amounted to £11.6 billion in February 2021. This is up 46.6% compared to January 2021, but a fall of 18.4% compared to February 2020 when exports to the EU amounted to £13.2 billion.

The UK Trade and Business Commission was launched this week to provide independent scrutiny of the UK’s trade deals with Europe and the rest of the world. The first evidence session will be held on Thursday 15 April, looking at the economic impact of the new EU-UK trading relationship. Witnesses include Julian Jessop from the Institute of Economic Affairs, Thomas Sampson from the London School of Economics and Vicky Pryce, economist and former Joint Head of the Government Economic Service.

The Commission brings expertise from the worlds of business, politics and international trade. It brings together eleven MPs from all nine Westminster parties and all four nations of the UK, along with business leaders and expert economists. The Commission is co-convened by Hilary Benn MP and the Chairman of Virgin Group Peter Norris and the secretariat is provided by the cross party, pro-internationalist group Best for Britain.

The Commission will take written and oral evidence from trade groups, industry and other experts on the UK-EU Trade and Cooperation Agreement (TCA) and other bilateral and multilateral trade deals, and recommend improvements and capture lessons learned to improve the UK Government’s future negotiations.