Ten years on: the Brexit questions SME’s should still be asking
Ten years ago, the UK voted to leave the European Union. For some, it was a vote for opportunity; for others, it was a vote for change; for all of us, it was a vote for a lot more paperwork.
In 2026, the dust has (just about) settled enough to review the full effects of the Brexit because whether you backed Leave or Remain, the commercial reality is the same for everyone.
Trade and exports
If your organisation relies on selling goods to Europe, or buying from European suppliers, you’ll be no stranger to the effects that came into play on 1 January 2021 when the UK officially exited the EU single market and customs union. The frictionless trade that UK businesses had relied on for nearly 50 years was replaced with customs declarations, rules of origin requirements, import VAT considerations, and, in some sectors, new product certification requirements.
For large multinationals, this may have meant hiring a customs team. For you, it likely meant spending more time on admin, paying higher freight costs, or having to abandon EU customers altogether.
What this means for you
“Businesses tell us they do not want to keep retreading old ground”, says William Bain, Head of Trade Policy at the British Chambers of Commerce, “but [want to] look forward instead.”
If your approach has been to work around Brexit, your results will be similarly ‘around’ optimised. Instead, successful organisations are those that work with Brexit by completely redesigning their trading models to fit the current rules, investing in stronger customs processes, and organising a review of their supply chains.
Errors cause delays, and delays can damage long-standing customer relationships. With the right audit support, many SMEs have found compliant, cost-effective ways to trade, building the right structures for the new landscape.
The talent gap
For some businesses, Brexit fundamentally changed how they recruit, retain, and plan for growth. The sectors most affected (hospitality, social care, agriculture, food processing, construction, and logistics) saw drastic labour shortages almost immediately, partly reflected by wage inflation. Many organisations now face visa costs, sponsorship obligations, and longer lead times.
What this means for you
- Are there roles in your business that are consistently hard to fill?
- Have your employment costs increased in ways that you can’t wholly attribute to inflation or staff birthdays?
- Do you have EU nationals in your team who haven’t yet secured their Settled Status?
If any of your answers to the above are yes, your people strategy needs updating to ensure it’s reflective your long-term ambitions and centred around growth. For some organisations, this could mean broadening where you recruit from or investing in retention – getting advice from an HR expert can help you build the framework to identify risks early, take the right steps at the right time, and keep your people and processes compliant.
Regulatory divergence
One of the less quantifiable but increasingly significant effects of Brexit is regulatory divergence: the gradually expanding disparity between UK and EU rules across product standards, data protection, financial services, and more.
In 2021, UK law largely mirrored that of the EU, but for SMEs selling into both markets in 2026, navigating two regulatory regimes has become the new normal.
What this means for you
- Product standards and CE/UKCA marking: if you manufacture or sell physical products, you may need dual certification to access both markets.
- Data protection (UK GDPR vs EU GDPR): broadly similar, but differences in adequacy decisions and data transfer rules mean any EU-facing data flows need reviewing.
- VAT and customs rules: the UK has taken its own path on several customs simplifications, creating two sets of changes to track.
- Professional qualifications: if your business relies on staff whose qualifications were automatically recognised across the EU, that recognition may now require additional steps.
The result of these parallel compliance tracks is more time, more resources, and potentially professional fees required to complete two processes for the same outcome as when you only needed one – not exactly BOGOF.
As the UK and the EU continue to develop their own regulatory frameworks, keeping up with developing regulations is quickly becoming more of a continuous process than a reactive one-off.
The UK Government has already signalled its intention to strengthen cooperation with the EU through further discussions later this year, and against this backdrop, organisations that make regulatory reviews a routine part of their governance will be far better placed to respond to whatever changes these upcoming discussions bring.
The Opportunities
There’s a chance we might have spent enough of the past 10 years dwelling in mutual resentment, signing petitions to rejoin, and complaining profusely – all of which while standing in the border security line at Stansted.
It’s important to be honest about both sides though, because as well as providing heightened sovereignty and legislative autonomy, Brexit has also opened doors for SMEs, for the long term. The biggest change that ETL have seen from our clients in more recent years, is that where conversations once focussed on what Brexit has/would cost, organisations are increasingly asking where the commercial advantage lies.
- New trade agreements: the UK has signed trade deals with over 70 countries, including Japan, Australia, New Zealand, and is a member of the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership). For SMEs with products that compete globally, this creates real market access opportunities.
- Regulatory flexibility: UK-specific rules in some sectors are more SME-friendly than their EU equivalents. In financial services, life sciences, and agri-food, it’s worth understanding where UK frameworks work in your favour.
- Domestic market positioning: some SMEs have repositioned around ‘British-made’ credentials with real commercial success, particularly in food and drink, fashion, and manufacturing.
- Reduced EU competition: in some domestic markets, EU competitors face their own friction in serving UK customers, which has benefited home-grown businesses.
What this means for you
It’s time to move past the question of whether Brexit was the right decision, and instead ask:
- Are your trading structures optimised for the current rules?
- Do you understand your total cost of compliance?
- Are there markets you’ve avoided for ease that we should be in?
- Is your workforce planning built for the post-freedom-of-movement reality?
- Do you have the right advisers around you?
The next ten years will be defined less by Brexit itself and more by how businesses respond to the environment it has created. With further UK-EU discussions underway and domestic regulation continuing to evolve, standing still is unlikely to be a successful strategy.
Whether you need support with cross-border trade, employment compliance, supply chain structuring, or growth strategy, our advisers bring the depth of knowledge and the practical experience your business needs.
