Ten years after the Brexit referendum, new research suggests many UK business leaders believe strengthening relationships with the European Union should now be a key government priority.
A recent survey by Institute of Directors (IoD) indicates that business sentiment has shifted, with more companies viewing the EU as the UK’s most important trading partner.
While political discussions around future UK-EU relations continue, the findings provide an interesting insight into how businesses view future opportunities for trade and economic growth.
Growing Support for EU Trade
The IoD research found that:
- 52% of business leaders believe the European Union should be the government’s top trading priority.
- This represents a significant increase from 35% reported just one year earlier.
The findings suggest that many businesses continue to see strong commercial opportunities through closer trading relationships with European markets.
Regulatory Alignment
The survey also explored attitudes towards regulatory alignment between the UK and the EU.
It found that:
- 63% support the government’s approach to pursuing closer regulatory alignment.
- 48% expressed strong support for greater alignment.
- Around 25% were strongly opposed.
For many businesses involved in international trade, greater regulatory consistency can reduce administrative burdens, simplify cross-border trading and improve commercial certainty.
Balancing Trade and Sovereignty
Interestingly, the research also showed that business leaders recognise the importance of maintaining UK regulatory independence.
While:
- 64% believe closer alignment with EU legislation would benefit the UK economy,
around:
- 75% also agree it remains important that the UK retains the ability to create its own regulations.
This highlights the balance many businesses would like to see between improving trade opportunities while maintaining domestic flexibility.
Changing Global Priorities
The research also revealed changing attitudes towards other international trading partners.
Support for making the United States the UK’s top trading priority has fallen significantly.
Only 2% of business leaders now identify the US as the government’s highest priority, compared with 10% in the previous year’s survey.
This reflects the growing importance many businesses continue to place on maintaining strong trading relationships with neighbouring European markets.
What Could This Mean for Businesses?
Although no immediate policy changes have been announced, future developments in UK-EU relations could influence businesses involved in:
- Importing goods.
- Exporting products.
- International supply chains.
- Manufacturing.
- Professional services.
- Cross-border investment.
Closer cooperation may eventually simplify certain regulatory requirements or reduce barriers for businesses trading with European customers and suppliers.
However, businesses should continue planning based on the rules currently in place until any future agreements are confirmed.
Planning Ahead
Businesses involved in international trade should regularly review:
Supply Chains
Understanding where goods originate and identifying alternative suppliers can improve resilience.
Customs and Import Procedures
Keeping up to date with customs requirements helps reduce delays and unexpected costs.
Financial Planning
Exchange rate movements, tariffs and international regulations can all influence profitability.
Professional Advice
Seeking advice when entering new markets or reviewing international operations can help businesses make informed decisions.
Final Thoughts
The latest research from the Institute of Directors highlights a growing desire among UK business leaders for stronger trading relationships with the European Union.
While future political decisions remain uncertain, businesses that trade internationally should continue monitoring developments and ensure they remain adaptable as the trading landscape evolves.
If your business imports, exports or is considering expanding internationally, we’d be happy to help you understand the financial and tax implications of trading overseas.
📞 01527 368220
📧 info@ojwassociates.co.uk
