CCR2 Brexit
‘Financial support needed for business Brexit adjustment’
As the UK splits from the European trading block, businesses need help in the transition
Allie Renison Senior policy advisor, Institute of Directors
We have urged the government to ‘step up to the plate’ and support SMEs frantically trying to adjust to Brexit. We have called for fiscal support to help
businesses, such as vouchers to help smaller firms access specialist advice or improved tax reliefs. The support would run into the new year to facilitate and speed up the adjustment process.
Campaign We have campaigned over the past four years to get the UK’s fiscal support for Brexit planning and adjustment at least on a par with its European neighbours, where similar schemes have long been in place.
Genuine plan The absence of a genuine implementation period means businesses have an enormous task to adjust rapidly to Brexit proper. With the end of transition now upon us it
is beyond critical that government step up to the plate to help the effort. While there has been some government
assistance for customs purposes, this only covers a fraction of the issues companies face. There is a much bigger panoply of firms
across different sectors who are now left scrambling to adjust. We also know from our research that
many businesses, particularly in light of the pandemic, could not adjust properly until changes were known so the need for this support will continue well into the new year.
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We also know from our research that many businesses, particularly in light of the pandemic, could not adjust properly until changes were known so the need for this support will continue well into the new year
Support We have long argued support could take the form of vouchers to help SMEs access the specialist advice they need in a number of areas. This kind of measure was provided long ago in countries like Ireland and the Netherlands. Alternatively, the Treasury should look
at making the tax treatment of Brexit adjustment activity more efficient. Either way, government must not sit on its hands.
Further details Under the IoD’s proposed voucher scheme, small and medium-sized businesses could submit online applications for immediately redeemable vouchers to purchase legal and professional advice in order to adjust to Brexit changes. The scheme could target SMEs, with
firms submitting applications for grants via an online form. Qualification criteria for the grant would also include that the business has a satisfactory trading record and the voucher must be redeemed against Brexit-related activity. Over half of IoD members have
previously said they would be likely to take advantage of financial support to help with their preparations, and voucher systems have precedent in the Netherlands and Ireland. A grant of between £2000 and £3000
based on the InterTrade Ireland and Enterprise Ireland rebates could be spent on Brexit-related advisory services from approved suppliers. CCR2
www.CCRMagazine.com January 2021
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