[New] Tough times ahead but at least the grown-ups are in charge

Last time we interviewed Richard Burge, the UK had just seen its ‘latest Prime Minister’ installed in Number 10.

Richard also namechecks the UKCA (UK Conformity Assessed) mark which has been pushed back two years. UKCA is the new UK product mark that will be required for certain products being placed on the market in Great Britain (England, Wales and Scotland). It covers most products that previously required the CE mark.

The UKCA mark will not be recognised outside of Great Britain and products will still need to bear a CE mark to be sold in the EU.

“The UK could choose not to do it – it would equally be a sign of a sovereign nation - but it is probably unlikely.” two incompatible international treaties – the Good Friday Agreement and the Northern Ireland Protocol. You get a sense now that both sides realise a solution has to be found.”

This is important as it could help build UK’s tarnished reputation not only in Europe but around the world. “Boris Johnson negotiated the NI Protocol and then said; ‘we don’t have to obey it’. This was really damaging to our reputation and the importance now is to make it clear that we are a nation that does not bend the rules”.

Overseas trading opportunities

In a matter of weeks, Liz Truss’s whirlwind Premiership had come and gone. So now that the dust has settled somewhat, is there reason for the country and businesses in general to be positive?

“You have two captain sensibles in charge of the two main parties – and this is how a grown-up country runs its government. I would say I am relieved rather than optimistic or positive,” Richard says.

As for the ‘B’ word Brexit and news coverage indicating that the impact of being outside the EU is now being felt, Richard believes that more pain and confusion could lie ahead.

“Brexit impact is starting to come through but the EU has still paused some changes that will be brought in – for instance regarding Solvency II ( a Directive in European Union law that codifies and harmonises the EU insurance regulation)”.

Thawing of UK and EU relations?

Returning to the idea of ‘grown ups’ being in charge, Richard points out that while Rishi Sunak supported ‘Leave’ it was from a standpoint of believing the UK would be better outside the EU –rather than an ingrained hatred and suspicion of the EU - like some of the zealots within his party.

So far there has been no sign of the provocative language used by Brexit hardliners.

“Rishi Sunak doesn’t have the same baggage as others. It is true that French President Macron is of the view that the UK must feel it has lost something from leaving the European Union. But there is also the feeling that dialogue in general is improving on all sides.”

Richard adds: “With Northern Ireland for instance, language is starting to emerge that you have

A potential thawing of relations with the EU and a focus on pragmatism - rather than the abrasive rhetoric from both sides of the English Channel – is no doubt encouraging. Especially as the frequently touted major trade deal with the US looks no closer now than it has ever been.

“Democrats are not by instinct in favour of freetrade, so there is little reason to expect US-UK trade deals to suddenly open up.”

Richard adds: “You are never going to get a US-wide trade deal as so much is done at a state level. Agreement with individual states in the US is the way forward,” Richard argues.

Other items on his wish list include a review of IR35 (off-payroll working rules) and a root and branch reform of business rates. “We need a major review of how the government taxes business but that is Royal Commission territory so that will not happen quickly.”

Backing small business

More support for SMEs is something that Richard would particularly like to see.

“We still haven’t cracked the problem of opening up capital equity markets to SMEs. The mechanisms aren’t there to enable SMEs to tap into this market. The UK government needs to make it easier for SMEs to access capital rather than most of the money going to bigger businesses.”

He concedes that fledgling high-tech businesses might attract capital from investors without too much difficulty since there is the opportunity for stellar growth followed by relatively swift merger or acquisition. However, for most companies attracting financial support is a hard slog. “If your business is in plumbing or retail, your reward comes from the return of your investment rather than the sale of your business.”

And finance from other sources might not only be difficult to secure but the other downside is there is there is little in the way of a buy-in to the venture. For instance, banks will only lend, they won’t invest – the only risk they take is on a default.

For high-tech businesses that may find it easier to access capital, Richard has concerns that while the concept might offer enormous potential, a lack of business acumen could prove a stumbling block.

“You have a tech business run by a group of 25year olds, they have no HR skills – why would they at that age? They often lack soft skills - how to engage with people which is essential in running a successful business. It is something that should be taught in schools but isn’t. Teachers have a lot on their plate as it is, but we need to look at equipping young people better in this area.”