8 minute read
Chamber News
from SBT issue 460
Removing trade barriers key to boosting export growth of UK businesses
Ana Christie, CEO of Sussex Chamber of Commerce, writes about challenges and how businesses surveyed believe they can overcome them.
Chamber News
Trade barriers are the biggest hurdles to overcome if businesses want to grow exports.
• 54 per cent of businesses say smoother customs procedures are the key to boosting UK exports • 42 per cent favour lowering tariffs, while 35 per cent say there is a need to reduce regulatory barriers, and 29 per cent want better support for smaller businesses • Overcoming the new requirements of the UK-EU Trade & Cooperation
Agreement (TCA) has encouraged one-in-ten (nine per cent) UK exporters to Europe to trade with new non-EU markets
While barriers to trade affect most firms, overcoming recent EU challenges has led some to expand into new markets, a survey from the British Chambers of Commerce (BCC) and DHL Express has highlighted. The survey of almost 1,000 UK businesses, 92 per cent of them SMEs, shows almost half (48 per cent) said the top barriers to exporting were costs and disruption, alongside tariffs (48 per cent), and customs procedures (47 per cent). A further 41 per cent of businesses said regulatory issues such as product certification were a hindrance to trade, and 37 per cent cited political, social, economic or environmental uncertainty.
Only nine per cent of firms surveyed
said their business does not face any barriers to exporting.
The lack of engagement amongst businesses with Free Trade Agreements (FTAs) is another stumbling block preventing more international sales. Four out of five firms (79 per cent) had not carried out any assessment into what they may need from a trade deal with major international markets. This falls slightly to 69 per cent for UK exporters.
However, businesses want their trading journey to be straightforward and allow them access to new markets with ease and speed. More than half (54 per cent) of respondents said ‘smoother customs procedures’ would be a top priority for future trade deals between the UK and other countries, followed by ‘lowering tariffs’ (42 per cent) and ‘reducing technical barriers’ (35 per cent).
When it comes to trading with the EU, almost two thirds (61 per cent) of UK exporters to the EU say they can meet the requirements of the UK-EU Trade and Cooperation Agreement (TCA), while 20 per cent say they can’t.
But overcoming the challenges presented by the TCA has offered growth opportunities in new markets for some businesses.
Of the exporters to the EU that agree they can satisfy the TCA requirements, nine per cent say they are now trading with new non-EU markets as a result of this, and a further nine per cent say they will now consider doing so in future. This highlights the opportunities that trade presents for businesses, especially those who show resilience in the face of challenges.
Commenting on the survey’s findings, William Bain, Head of Trade Policy at the British Chambers of Commerce, said: “Our findings highlight the real priorities traders have for UK trade negotiations with partners across the world, and other trade policy developments. Faster customs processes, tariff reductions, removing technical barriers to trade, focused support for SMEs’ easier labour mobility, and mutual recognition of professional qualifications are the top six issues for the UK’s SME exporters.
“For traders exporting to the EU, speed, efficiency and reduced hassle are even more to the forefront of their minds. The BCC has a plan to cut red tape on UK-EU goods movements. We also have ambitions to boost UK exports across our key global markets through new Single Trade Window developments and trade negotiations. While there are challenges currently facing exporting businesses, there are also of course many opportunities. It’s crucial that in the coming years, SME exporters working with trusted logistics partners feel the significant benefits of global trade as we hopefully see the removal of barriers and the opening up of new international markets.”
Ian Wilson, CEO, DHL Express UK said: “Businesses have been through enormous challenges over the last two years, but they have shown incredible resilience. During times of economic uncertainty, having a presence in a number of markets is an effective way to minimise risk, so we need to ensure that UK businesses are encouraged to keep looking for international trade opportunities. While international trade can be challenging, businesses don’t have to go it alone. We can see from the research that most businesses aren’t aware of what FTAs could mean for them. It’s in everyone’s interest for them to succeed overseas, so we want exporters to feel empowered to talk to Government, their trade bodies and businesses like ours about what support they need.”
Global Business Network
We’re so much more than a UK network. Did you know there’s a wider international community too? Well, British Chambers of Commerce represent our members in over 40 countries around the globe. We call this our Global Business Network (GBN).
Do you import or export goods and services? Would you like to start?
Every Accredited Chamber offers International Trade advice and services. Including customs declaration certification and documentation. So, if you import or export goods and services; or if you’d like to start – you’ll be needing Sussex Chamber. Contact us at export@ sussexchamberofcommerce.co.uk or call the office on 01444 259259.
The science behind the four day week
Mel Berry, of Social Firefly, examines the facts following a trial in Sussex, supported by Brighton Chamber and led by the University of Sussex.
Four day weeks, nineday fortnights, flexible working - topics which have regularly dominated the news in recent years. They have been hailed as the utopia of the modern workplace, but what’s the science behind them? Over 60 local businesses made their way to Brighton Chamber’s event ‘The science behind the four day week’ on 26 October to find out. Introduced by Kerry Watkins, Managing Director of Social for Good, and chaired by Dr Charlotte Rae, Lecturer in Psychology at the University of Sussex, the scene was set for a fascinating evening.
Dr Rae introduced business leaders to Chamber News the initial findings of her trial to measure the biological and psychological benefits (spoiler - there are many!) of reduced working hours alongside business performance. The Sussex four day week is the only study specifically looking at the biological component.
Trial is the first of its kind
Six Brighton businesses, including Cloud9 Insight, Social Firefly, St John’s College and Brilliant Noise, undertook a series of assessments, from in-depth questionnaires to biological tests such as MRI scans and blood tests.
The trial lasted three months, with employees receiving 100 per cent of their wage, working 80 per cent of their regular hours.
Dr Rae set out her findings, which included:
● Improvement in mood ● Reduction in burnout ● Increase in enthusiasm and motivation ● 10% increase in self-rated productivity
These benefits were immediate upon starting the trial and continued throughout.
In short, extra time for rest – sleep, hobbies, relaxing and time with families – meant employees were happier and
better rested, enabling them to maximise brain function on days they were working.
The highs and lows of taking part
‘Pilot it first’
We heard from four businesses about why they got involved, the benefits, the challenges and if they think the four day week is the future.
Cloud9’s employees tested having Friday off once a fortnight, spending the other Friday on strategy and learning within the organisation, getting employees away from their day-to-day work and benefitting the development of the business.
CEO, Carlene Jackson stressed it looked good for recruitment but not necessarily for retention - clear career paths, paying well and great management were bigger contributors for keeping staff.
Their advice to anyone thinking about it - pilot the scheme before introducing anything concrete.
‘A greater respect for staff’
James Armstrong, Director of Social Firefly, highlighted that team wellbeing, while maintaining output, was at the forefront of his mind. An unexpected bonus was that people respected each other’s time more and there seemed to be greater focus.
Overall, he felt that taking part shows trust in colleagues, and that can only be a good thing, right?
‘Consider the costs’
Christina, Registered Care Manager from St John’s College, got involved in the pilot to improve recruitment and retention in an already squeezed sector - social care. She said it was particularly useful for those in emotionally demanding roles, who reported feeling happier and more patient – meaning they were able to deliver a higher quality of care.
However, if they were to continue, fees would need to be increased to cover additional costs of having to take on staff to cover additional day. Despite this, she felt the benefits greatly outweighed the negatives.
‘A more human approach to work’
Antony Mayfield, the Founding Partner and CEO at Brilliant Noise, said he simply wanted to build a better place to work. The shorter week was useful in flushing out ineffective systems, creating a better talent offer, making team members more disciplined and focused. He felt a four day week was the more humane thing to do - to allow time for people to be people.
The effect on business performance
Now onto the biggie - how was performance affected? Business performance metrics have shown productivity was maintained or improved, with five of the six companies intending to make the four day work week permanent - a pretty resounding success.
Is a four day week the future?
It is not, in itself, a silver bullet but, accompanied with other benefits, it bolsters employers’ offerings, staff happiness, motivation and the businesses bottom line. And that’s the thing - it’s seen as a benefit. How long before it’s the social norm?
Inspired to take the plunge?
The Sussex team are continuing to enrol employers. If you’d like to try a four day week for your business, contact Dr Charlotte Rae: c.rae@sussex.ac.uk.
This event was run by Brighton Chamber and the University of Sussex as part of the 20 years of the Economic and Social Research Council’s flagship of Festival of Social Science.
Brighton Chamber would like to thank Mel Berry for this article and Stuart Robinson, University of Sussex, for event photography.
https://www.brightonchamber.co.uk/
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