A leading business support organisation has pin-pointed three areas which companies need help with ahead of the end of the UK’s transition period with the EU for the long-term future of Coventry and Warwickshire’s economy.
The Coventry and Warwickshire Local Enterprise Partnership (CWLEP) Growth Hub’s SmartRegion report from November 3-30 obtained information from the CWLEP’s business engagements and survey data as well as Warwickshire County Council, Coventry City Council and the Coventry and Warwickshire Local Enterprise Partnership (CWLEP).
The data shows there needs to be further clarity around data regulations, Intellectual Property and upskilling workforces in customs declarations and processes which will all have a vital role to play in the area’s economic recovery.
The latest figures available from the Office for National Statistics (2018) show that businesses in Coventry and Warwickshire export more than was imported by nearly £200 million with over 6,400 businesses trading with the EU compared to 4,600 to Non-EU countries.
HM Revenue & Customs estimate that they will annually process 270 million customs declarations nationally from 2021, compared with current volumes of 55 million, which is estimated to cost around £15 billion a year.
Craig Humphrey, managing director of the CWLEP Growth Hub, said imports and exports are extremely important to Coventry and Warwickshire’s economy.
He said: “Businesses are starting to feel the impact of a speculated “No Deal” EU Exit with it being reported that in some cases supplements are already being added to invoices to offset any potential additional costs of leaving the EU.
“Other issues include imported goods that are being held in ports until taxes are paid before they are being released.
“But on a positive note, the import and export courses that are being run by the Department for International Trade have been well received and these have saved businesses from having to source advice from an array of external consultants.
“Pinpointing and targeting businesses that currently trade with the EU and detailing what they will need to check, change and complete, to ensure future trade will be key to mitigating the changes and taking advantage of what our future relationship will look like.
“Our research shows that trends in the future will depend on the long-term trading relationship that the UK and EU possibly agree on in the coming days and weeks. This could present opportunities for onshoring in the supply chain but, alternatively, this could present difficulties for sectors which are part of a supply chain that is dependent on imports.
“Given the concentration of logistics and transport sector industries within Coventry and Warwickshire and the wider West Midlands, the impact could be more acute in certain sectors that rely on the movement of goods to and from Europe and beyond.
“There is a great deal of free up-to-date advice and information on our website about the EU Exit and I would urge all businesses regardless of their size or sector to take a look to make sure they are as prepared as they can be, despite the ongoing uncertainty about our future trading relationships.”
Caption: Craig Humphrey, the managing director of the CWLEP Growth Hub