What will the impact of the end of transition be?
With the UK government ruling out an extension to the transition period, a no trade deal scenario at the end of the year remains a possibility. However, if a deal is agreed it will be an Free Trade Agreement (FTA) offering a markedly different basis for market access between the UK and the EU. This means that, deal or no deal, there will be extra costs and barriers to trade in the UK-EU relationship post-Brexit; from 1 January 2021 which will have implications for UK businesses.
The end of the transition period will affect every business in the UK in different ways – whether you’re part of a pan-European supply chain, stock European products or rely on the skills of EU nationals.
The right planning will help your business to mitigate against some of the impact. But since the outbreak of the COVID-19 pandemic, 58% of firms have been unable to progress their Brexit preparations. 21% of firms feel their level of preparedness has fallen, increasing to 27% for manufacturers. That’s why we’ve put together this guidance to support your post-Brexit preparations, highlighting what the impact may be and what to do about it. And because we understand that both government and business’ priority will be getting the best deal with the EU, we will continue to campaign for an EU trade agreement that works for business.