Sunak faces business backlash after claiming Brexit is saving businesses money

The Prime Minister is facing a strong backlash from business leaders after claiming that “post-Brexit freedoms have enabled the government to cut red tape saving British businesses £1 billion per year.

Rishi Sunak made the claim during his speech to the Conservative Party Conference but has been contradicted by business leaders from the cross-party UK Trade and Business Commission who have highlighted that Brexit has created “exponentially more” red tape than it has removed.

Multiple sources have estimated that Brexit has increased costs for businesses by around 8-9% on goods and services equating to around £25bn per year. Last week, the government confirmed  that red tape costs on animal and plant products alone will increase by £330 million per year when their Brexit checks are fully implemented, 

Many are predicting that these costs will be felt by consumers with the London School of Economics estimating that Brexit has already added £250 to the average annual shopping bill. 

Geoff Mackey, UK Head of Plastics Europe and member of the UK Trade and Business Commission said,

“Almost any business-owner will tell you that far from cutting red tape as claimed by the Prime Minister today,  Brexit has added exponentially more, increasing costs and delays while reducing access to labour and opportunities, stunting economic growth.

“Regulatory alignment with our largest market where beneficial, as recommended by our commission can begin to bring these costs down.”