Small businesses say “the supply chain could fall apart” unless the next government prioritizes international trade.
Figures from the Federation of Small Businesses (FSB) show that one in five (22%) small businesses are worried about the costs of exports and imports over the next five years.
The research also shows how one in four (27%) would like to see a reduction in the cost and time it takes to import and export.
Elsewhere, three in ten (28%) say one of the measures in the FSB’s proposed manifesto for a Small Business Bill should focus on making it easier for the UK to do international trade.
Tina McKenzie, FSB Policy Chair, said: “International trade drives progress and new ideas, and without it our supply chain is crumbling. Small businesses that reach global markets also tend to grow faster and be stronger during difficult economic times.
“However, our research presents some worrying figures, so the next government will need to keep trade at the top of its agenda.
“Strengthening trade links with important markets such as the EU and US is key to the UK’s future as a global trading force. This would also incentivize small businesses to start and continue trading.
“Our election manifesto outlines ways to achieve this, including creating a simple online business portal that collects all the information small businesses need to provide once – a “once done” approach. The extensive paperwork and confusing tariffs associated with international trade are also a concern, and these administrative burdens need to be reduced.
“Investing in training for Border Force personnel is a quick way to maintain the smooth movement of goods across borders, as well as resources on the ground to improve customs training.
“There also needs to be plans for an export development grant or next-generation tax relief scheme, inspired by successful international examples, such as those used in Australia for decades.
“In the 2026 review of the UK-EU Trade and Cooperation Agreement, the Government should negotiate to remove the need for an intermediary for the EU VAT system. They should also aim for mutual recognition of product standards and professional qualifications in key sectors.
“We are pleased to have been invited to work with the Labor Party on a working group on exports, which will create a better approach to trade and industrial policy and which will be published shortly.
“Simplifying international trade for small businesses will allow us to drive significant economic growth and increase resilience. We must not miss this opportunity.”