Britain’s export performance has slipped behind that of other developed nations as the recovery from the pandemic continues.
According to a report in the Financial Times, sluggish exports have become a ‘worrying trend’ as UK firms struggle to attract overseas markets.
By August this year, global goods trades rebounded well following the economic slowdown brought about by the pandemic. But whilst export volumes are well above pre-pandemic levels, the UK has struggled to get in on the action with export activity significantly lower than before Covid-19 hit.
In the three months to August, UK goods exports were down 13% whilst services dropped 14% too, whilst a longer six-year trend also shows UK bottom of a list of the world’s most advanced economies, including Canada, Spain, France and Greece.
Brexit hasn’t been the only factor either, with trade data showing sluggish activity with non-EU nations with a 20% drop in export activity compared to 2019.
“Supply disruption associated with both Covid and Brexit has weighed on UK competitiveness in general, not just on trade flows with the EU.”
Benjamin Nabarro, Citi Research
There are some nuggets of optimism though, with export activity showing strong growth with the Netherlands, Belgium and Ireland.
Small firms in the UK have received less than half of a £20m pot promised by the government which was designed to make up for any shortfall in EU business following Brexit.
Treasury figures show just £8.4m has been allocated so far, with just over 5,000 out of an eligible 113,000 SMEs benefiting from grants worth up to £2,000.
Businesses in Northern Ireland and Wales have claimed less than £670,000 combined.
Opposition politicians have called for the fund to be relaunched and the budget to be significantly increased to support the nation’s smallest businesses.
Liberal Democrat spokesperson Sarah Olney said that: “Smaller firms have borne the brunt of both the pandemic and the government’s botched Brexit deal.
“But instead of offering business owners support to help them get back on their feet, ministers are clobbering them with a manifesto-breaking tax hike.”
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