Article 50: Bath business reaction. ‘Leaving the customs union will be a huge mistake’

March 29, 2017
By

Bath area firms have reacted with alarm at the prospect of the UK leaving the single market and customs union, warning they face losing customers or even relocating away from the UK.

Their comments are based on their responses to the latest survey conducted by Business West, the region’s largest business organisation, and released last week as Article 50 was formerly triggered.

The owner of The Green Stationery Co, which employs three people at its base in Bath’s Walcot Street, warned he faced losing most of his business.

Jay Risbridger said:Extra costs added by carriers in Europe for clearing documentation outside the single market and customs union would make supplying EU customers uncompetitive and we would lose most of our business.

“If the UK wishes to restrict workers coming to this country, not abide by regulations arbitrated by the ECJ (European Court of Justice) and refuses to contribute to development funds like all other EU countries, then we can expect restrictions on UK workers in the EU, regulatory barriers and tariffs to trade with EU countries in response.”

The firm specialises in recycled paper and green office supplies such as pens, files and printer cartridges.

Meanwhile, comments from the owner of a Bath software company, who wished to remain anonymous, underlined the downbeat message emerging from the survey results, especially from businesses selling overseas.

He said: “90% of our business is export (40% to Europe, 40% North America, 10% other markets). There is still a lot of uncertainty about the practical implications of Brexit.

“However, we can only assume that business conditions for exporters will become more complicated and unpredictable. Luckily, being a European national, I can either establish a subsidiary on the continent or relocate the business to the continent.

“We are keeping our options open in terms of keeping the business in UK, relocating to the continent or setting up a subsidiary on the continent.”

At wholesale gift manufacturer and distributor Fairyglass, owner Ben Biscoe said the family-run business had put all plans for exporting on hold.

“We’re concentrating on expanding our market share in the UK instead while we wait for clarity on EU negotiations,” he said.

“We’ve taken on agents to push our ranges over our competitors, and invested in systems internally and for our customers to use that make working with us simpler.”

The fast-growing Corsham-based firm operates from a 15,000 sq ft warehouse and, following the 2011 acquisition of Fairy Dust, which makes a range of fairy wings, wands and dresses, brought production from China to the UK.

It also sells its own brands to more than 500 UK retailers as well as stores across Europe and represents several leading US manufacturers.

Mr Biscoe added: “I think there are opportunities for us once we’ve left the EU, although overall I’m not in favour of leaving. I believe that leaving the customs union is a huge mistake, and one that we won’t see the effects of for several years, by which time it will be too late to do anything about it.

“We've been concentrating on our export market for a couple of years now but I think that most of the work we’ve done will go to waste. Our customers in Europe can purchase as easily from our competitors in Europe and the introduction of a tariff system, even with zero tariff payment (just paperwork) means it’s far less attractive for a retailer to purchase from a UK source unless our pricing is much more competitive.

“We can’t lower our prices more, as we’re hit in the UK with more regulatory costs, higher business rates, and far higher import costs.”

 

 

Comments are closed.

ADVERTISE HERE

Reach tens of thousands of senior business people across the Bath area for just £75 a month. Email info@bath-business.net for more information.