Post-Brexit trade plan must be replaced with ‘ambitious strategy’, says think tank

    Simpson Wood
    11th July 2023
    Home » Categories » Business » Post-Brexit trade plan must be replaced with ‘ambitious strategy’, says think tank

    The Resolution Foundation think tank has called for the government to replace the initial post-Brexit trade plan with a ‘far more ambitious’ strategy to help protect Britain’s manufacturing firms and seek new markets for UK services firms.

    A report published by the Foundation found that the UK’s initial post-Brexit trade plan to secure Free Trade Agreements (FTAs) with other countries had ‘been largely successful’.

    However, it suggested that this approach has ‘run out of road’ as FTAs with the US and China ‘are not on the horizon’. According to the think tank, Britain’s high value manufacturing sector is ‘particularly vulnerable’ following the UK’s exit from the EU as it often relies on being part of European supply chains.

    It warned that manufacturing firms’ positions in these chains will erode over time as a result of higher trade costs.

    The Resolution Foundation said that a new ‘twin-track‘ trade strategy is needed, with a defensive focus on goods and a fresh approach to promoting the UK’s strengths as the world’s second largest exporter of services.

    Sophie Hale, Principal Economist at the Resolution Foundation, said:

    ‘For the first time in half a century Britain needs a trade strategy. But it does not have one.

    ‘A new strategy must recognise the nature of the UK economy, developments in global trade patterns, and rising geopolitical tensions regarding goods trade in particular. That requires a twin-track approach, protecting important high value manufacturing sectors, from cars to chemicals, struggling to retain their place in European supply chains, while focusing on new markets for its world-leading services firms.’

    Internet link: Resolution Foundation website

    Need Some Advice?

    Looking for some help or a little advice?

    Call today on 01484 534431 or fill in our enquiry form below, and we’ll call you back.

    Autumn Statement Summary 2023

    The Chancellor, Jeremy Hunt, delivered his Autumn Statement on Wednesday 22 November. Our summary boils his 110 different proposals down to a concise report of the key points. The Autumn…

    Latest guidance for employers

    HMRC has published the latest issue of the Employer Bulletin. The October issue has information on various topics, including: Please contact us for help with tax matters. Internet link: Employer Bulletin

    Hybrid and remote working here to stay

    A large majority of UK business leaders plan to offer employees remote and hybrid working in the long-term, according to the Institute of Directors (IoD). A survey conducted by the IoD…

    Many firms still facing recruitment problems

    Many UK firms are still facing hiring issues as a result of challenging economic conditions, according to a report from the British Chambers of Commerce (BCC). 73% of firms surveyed by…