Business leaders have warned Prime Minister Keir Starmer that forging closer trade relations with the European Union has become a strategic necessity as UK exporters struggle under post-Brexit trading arrangements.
The British Chambers of Commerce (BCC) said the current UK-EU Trade and Cooperation Agreement (TCA) is failing to support growth, with more than half of exporters reporting it has not helped them sell into the EU. The findings are based on a survey of nearly 1,000 firms, most of them small and medium-sized businesses.
According to reports, 54% of exporters said the deal negotiated by Boris Johnson’s government was not beneficial up 13 percentage points compared with a similar survey last year. Only four businesses said government support on managing trade policy changes was adequate.
Steve Lynch, the BCC’s director of international trade, said the government needed to move faster on resetting relations with Brussels, stressing that trade offered the quickest route to economic growth.
He added that firms were finding it increasingly difficult to access the UK’s largest market.
The intervention adds to growing pressure on Labour to reassess its approach to the EU, particularly as ministers prepare to prioritise EU relations in 2026.
Several senior Labour figures, including Health Secretary Wes Streeting, have publicly supported closer trade cooperation, despite Labour’s manifesto ruling out rejoining the EU single market or customs union.
Report revealed that exporters continue to face complex regulatory changes on both sides of the Channel, with some businesses reporting a sharp decline in EU sales since Brexit.
It has proposed five priorities for talks with Brussels, including reducing border checks on food products, linking emissions trading schemes, introducing a youth mobility programme, joining the EU’s defence fund, and simplifying VAT and customs processes.
A government spokesperson said ministers were committed to cutting red tape and rebuilding ties with the EU to support jobs, businesses and economic growth.
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