Road to Brexit - How would a Brexit impact UK SMEs?

How would Brexit impact SMEs?
How would Brexit impact SMEs?

PROs

  • Leaving the EU would free the UK government to liberalise EU trade regulations which are seen as burdening British businesses with red tape and often impact SMEs disproportionately.
  • There could be cost reductions of around €180 (£128) per person as a result of not having to contribute to the EU budget, which raises the prospect of tax reductions that could benefit businesses.
  • Membership of the European Economic Area rather than the EU might provide access to the internal market, without having to deal with red tape – such as is the case with Iceland.

CONs

  • The cost and complexity of trade with other European countries could gradually rise if tariff changes are made against UK goods and services.
  • Lack of import taxes within the EU mean British businesses compete on a level playing field with businesses across the continent. Leaving the EU would create significant uncertainty, which may be enough to cause them to cut back on investment here.
  • The current system of free trade agreements with non-EU countries may no longer apply to the UK, which would have to renegotiate them, likely on less favourable terms as a smaller individual trading partner.