MPs have said that as a result of Brexit, UK firms have been hit by increased costs, paperwork and border delays.
A report from the Public Accounts Committee (PAC), parliament’s spending watchdog, said it was clear that leaving the EU had an impact on UK trade volumes.
Warning was also given that things could worsen this year with the coming of new import controls.
The government continued to ensure that businesses got the support they need to trade efficiently with Europe.
PAC chair, Meg Hillier, said that one of the great promises of Brexit was letting British businesses free to give them the headroom to maximise their productivity and contribution to the economy, which is even more desperately needed now on the long run to recover from the pandemic.
He also added that now the only detectable impact so far is increased costs, paperwork and border delays.
The committee said that while it was hard to extricate the impact of Brexit from the effects of Covid and wider global problems, it was clear that EU exit has had an impact on UK trade volumes.
The report states that as a part of a cabinet reshuffle, Jacob Rees-Mogg has been appointed minister for Brexit opportunities.
Considering the report, the Public Accounts Committee (PAC) said that the committee was concerned about what will happen when passenger traffic across the UK border returns to normal levels as the pandemic moderates.
An artisan cheesemaker based in Devon, Mark Quicke, said that the committee’s findings matched with her experiences.
Mark told Radio 5 Live, “There are just all of these hurdles to doing what used to be extremely simple which was agreeing to make a sale and then calling the haulier and when it went off, you got paid.’’
She also added that she has not yet seen the new opportunities she hoped for after Brexit.
She also worries that clients in the EU will stop taking her products, if the problems continue.
The report also mentioned that trade volumes have been suppressed by the impact of Covid-19, and wider global pressures in supply chains are seen since the UK left the EU customs union and single market.
But it is clear, as the report mentions that leaving the EU also had an impact by increasing the bureaucratic burden on businesses.
The report said that there is a potential for further disruption during the course of this year as more people will start travelling again and passenger volumes at key ports such as Dover will increase.
New border systems are still to be checked with traffic back at what were the normal levels before the pandemic struck.
There is also a slight risk of more delays later this year, when the EU introduces biometric passport controls under its new Entry and Exit System.
It was told by the Cabinet Office to the PAC that discussions are advancing with French officials about how this might work in practice at busy ports like Dover, where it was said in the report that it is important that checks that apply to HGV drivers do not delay the throughput of lorries.
On 1st January, another big test identified by the committee will be the phased introduction of controls on imports into the UK, will start.
