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As the UK marks 10 years since the Brexit referendum, new polling from the European Movement Ireland shows that public opinion in Northern Ireland has shifted decisively towards Europe.

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A new report released today by European Movement UK highlights how small-and-medium-sized enterprises (SMEs) in the UK have struggled since the UK left the EU.

The report, Freedom to Prosper, which interviewed dozens of SMEs across the UK, can be downloaded here.

Key takeaways from the report:

• Most businesses said their trade with EU countries had reduced significantly in the last few years, with increased costs, complex new paperwork and long delays on exports making them uncompetitive compared to businesses within the EU's single market.
• It comes after new research from the Federation of Small Businesses (FSB) found that 34% of SME exporters expected to reduce or stop EU trade altogether if current arrangements remain in place, while just 6% saw opportunities to grow. 
• With the second UK-EU Summit expected to take place in July, this report lays out the business case for UK membership of the single market.

For the report, businesses across the UK shared their post-Brexit experience with us.

Alison Lea-Wilson MBE, of Anglesey Sea Salt Co. Ltd, in Anglesey, Wales said:

"Since Brexit, trading with our largest export markets - Italy and Spain - has become so much harder. Before Brexit, it used to take under a week to export one pallet of our products from Anglesey to Bologna, but now it takes up to three months. 

“The delays are largely due to excessive paperwork. Rather than following the EU rules across all European countries, we now must liaise with each country individually. As a result of Brexit and the difficulties we face trading with the EU, the company lost four major EU distributers, sadly this translates to a loss of customers."

Mike Donovan of Apparel Studio, Stockport, also said:

"As soon as the referendum vote happened in 2016 our earnings were cut in half almost overnight. The 12% tariffs on all imports and exports drastically decreased our profits which meant we had to change our business model and move our manufacturing to countries like Turkey.

"Simply put, we need access to the customs union and the single market so that our business can thrive again."

Tina Makin of Pie Events, based in Surrey, shared her businesses’ experience:

"We design and deliver bespoke UK and European cycle rides for UK charities. The biggest challenge for us is the increased costs and admin associated with using Carnets [temporary and tax-free export/import of goods]. As part of our service, we arrange the transport of all the bicycles and equipment which before Brexit, was as simple as loading up a van and setting off. 

“Now, this entails a series of long-winded forms for both my business and the customer. For example, each individual participating in a bike ride is required to fill out a form detailing the exact make, model and colour of the bicycle, as well as where it was manufactured and its value. The carnet is a substantial cost to the business as we pay for the pleasure of using a Carnet as well as paying a fee per bicycle, a percentage of the bicycle’s value."

"What this report demonstrates clearly," remarked Sir Nick Harvey, CEO of European Movement UK, "is that many of the barriers facing British businesses today stem from the loss of frictionless access to the European single market. While some tariff-free trade remains in place under the current arrangements, companies are now navigating customs paperwork, regulatory duplication and restrictions on labour mobility that simply did not exist before 2020. For many firms, particularly small and medium-sized enterprises, these additional frictions translate directly into higher costs, reduced competitiveness and lost opportunities.

"Perhaps the most powerful aspect of this report is that it allows businesses themselves to speak. From manufacturers and exporters to educators, freelancers and cultural organisations, the case studies presented here illustrate how changes to the UK-EU relationship are affecting real people running real businesses. These are not abstract statistics repeated by both sides of the argument; they are the real experiences of entrepreneurs who have had to restructure supply chains, absorb new administrative costs or reduce their presence in European markets simply to continue operating.

"Companies across the country have worked hard to adjust to the new trading environment. However, resilience should not be mistaken for satisfaction. The central argument of this report is therefore straightforward. If the United Kingdom is serious about boosting productivity, supporting SMEs and expanding exports, it must consider how its relationship with Europe can better support those goals."

As the UK Government builds on its UK-EU reset, there is a clear opportunity to listen to the voices of UK business and ensure that economic growth, support for SMEs, and cutting red tape are at the heart of that relationship. Our report has three recommendations to the Government.

1. Join the Single Market and Customs Union. This would address the root causes of current frictions by restoring regulatory alignment, removing rules of origin requirements, and establishing seamless trade in goods and services.
2. Restore freedom of movement. Labour mobility is not peripheral to economic integration: it underpins it. Restoring mobility would ease labour shortages, strengthen fiscal sustainability, and expand opportunities for UK citizens across Europe.
3. Give SMEs a voice in UK-EU negotiations. Smaller businesses have borne a disproportionate share of post-exit complexity yet often lack direct representation in high-level negotiations. Their voices must be embedded in policy-making.

Read the report, Freedom to Prosper, and sign the petition calling on the Government to deliver our three recommendations.

Latest polling released today by YouGov shows that 55% of people support EU membership.

Just 33% would be opposed to the UK rejoining the EU.

It also shows that 1 in 5 people (21%) who voted to leave in 2016 have changed their minds, and would now vote to rejoin.

The latest polling is available here.

The polling also shows support for the UK rejoining the EU according to political party affiliation. By party and from highest to lowest:

• Green voters: 84% back rejoin
• Labour voters: 80% back rejoin
• Lib Dem voters: 74% back rejoin
• Conservative voters: 28% back rejoin
• Reform voters: 11% back rejoin

Dr Mike Galsworthy, Chair of European Movement UK, said:

"Almost ten years have passed since the United Kingdom voted to leave the European Union, along with its membership of the Customs Union and the Single Market. In that time, the consequences for the British people have become increasingly stark. 

“This latest polling not only reinforces that - it shows that more and more people see the benefits of much closer ties with the European Union - having felt the pain of Brexit.

"We have seen soaring import costs, increased workforce shortages and reams of new red tape. No wonder exports to the EU by our small businesses are down by 30%, and 20,000 small firms across the UK have stopped all exports to the EU. Meanwhile, LSE research shows a £27bn fall in goods exports to the EU - enough to fill a fiscal black hole or two. 

“Politicians must now face the facts - ten years since the vote, Brexit is still an ongoing accident, and its damage is far from over."

Research released today by the Food and Drink Federation shows that UK exports of food and drink to the EU are down by almost a third compared to 2019.

The 'trade snapshot', available here, shows UK exports are down 31% on pre-Brexit levels.

It says the huge drop in EU business is due to the complexities of trading with the EU, and calls on the government to help promote British products abroad and prioritise preparing businesses for the SPS Agreement, a deal which would help cut red tape involved in exporting UK products to the EU.

Sir Nick Harvey, CEO of European Movement UK, said:

"We cannot ignore this figure. A 31% loss in our food and drink exports is hammering our growers and producers, many to the point of simply giving up. The damage done by leaving the single market is egregious.

"Anyone claiming that this is a Brexit betrayal simply doesn't understand the dire situation our food industry has faced since the UK left the EU, when it mangled its trading relationship with its best customer.

"Farmers, growers, fisheries - they've all been hammered by extra red tape, which made them so uncompetitive in terms of exports that many of them simply gave up exporting to the EU, or went out of business altogether. The announcement of this deal will help not just them, but all of us in terms of food prices, at a time when the cost-of-living looks again set to increase for all of us on our food costs and energy bills."

David Catt, a fruit and vegetable farmer based in Kent and European Movement member, said:

"This reflects what all farmers already know - that trading with the EU has become much harder in the last five years. You've got dairy farmers going out of business on a weekly basis because they can't export because of the red tape. Producers are in a domestic market which simply doesn't buy enough, so they're stuck with produce they can't sell and can't export.

"Potatoes are down, milk is down, fruit is down - we need to get rid of the extra red tape as soon as possible, and the government making a deal with the EU is the only way to breathe life back into the UK farming, growing and fishing industries. It cannot come soon enough."

Ten years on from the referendum, Ireland shows why Britain should join the EU single market again.

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On Wednesday 11 March, Business with Europe was officially launched at a packed event in the superb setting of the AMPA offices at The Shard, bringing together business leaders, entrepreneurs, professionals and trade organisations from across the UK. 

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By Mark English, policy adviser to European Movement UK – personal views

The war in the Middle East has shown that the UK has no audible voice in Washington – indeed, President Trump has launched anti-British diatribes. So, if we want to be a player on the international stage, we need our voice and our vote in Brussels back - only membership of the EU will give us those, but that will take time. Meanwhile, the UK government’s reset with the EU needs an injection of ambition and urgency, to mitigate the already disastrous economic effects of the war.

The war is bringing major economic challenges

The conflict will not only increase energy bills. Food prices will also be hit in two ways. First, higher oil prices mean higher transport costs. And second, the supply and cost of fertilisers will be seriously affected, with a knock-on effect on food prices and potentially on the security of world food supply.

According to the government’s own Office for Budgetary Responsibility (OBR), all this will likely add a percentage point - possibly more - to UK inflation in 2026. That will make it harder for the Bank of England to keep interest rates low, a precondition for the growth the government hopes for in the run-up to the next election.

The UK now needs urgently to mitigate the coming energy price rises by negotiating -as promised - full participation in the single market for electricity.

It is also now even more urgent to agree a food trade (SPS) deal with the EU. There was a welcome sign this week, as the government began the groundwork to align UK rules with the EU. But even a wide-ranging SPS deal will only partly remove Brexit red tape – what we really need, as European Movement UK is arguing, is a return to the single market and customs union.  

A long-term commitment to Europe

For all of the damaging short-term effects, the most important lesson from the crisis is that the UK must make the long-term strategic choice to commit to Europe.

President Trump’s actions underline that the transatlantic alliance is no longer a basis for European security. This highlights the urgency of delivering on commitments to increase defence and associated spending to 5% of GDP. For the UK this means a rise of about £85 billion, from just over £60 billion annually to roughly £145 billion at current prices.

Estimates of Brexit’s hit to UK GDP vary from 4% to 8%. That corresponds to between £40 billion and £90 billion less in tax revenue every year. So at least half the necessary increase in defence spending - and perhaps even the whole lot! The only way to start getting that money flowing back into government coffers is to sweep away Brexit barriers to UK trade.

European countries also need to make defence spending more efficient. A key part of that must be a comprehensive European defence industry policy. Such a policy can only be delivered through the EU institutions. 

The UK cannot afford to be left on the sidelines and the EU cannot afford to leave the UK’s capacities outside its plans. The first step should be to re-open negotiations on UK participation in the SAFE defence investment fund. But UK participation as a ‘guest’ in EU initiatives will not allow us to influence the design of policies and funding schemes, nor to participate on the same level as member states. Only EU membership can do that.

A boost for Russia, a threat to China and to the UK

The war in the Middle East has strengthened Russia. The US is expending weapons and ammunition that may not now be available for Ukraine. And the rise in oil and gas prices and the need for China to replace supplies from Iran will boost Russia’s flagging economy. Ukraine needs more than ever the EU’s support and the prospect of joining soon. The further the UK goes towards reversing the Brexit that so delighted Vladimir Putin, the better placed the EU and the UK will be to back Ukraine.

Some thoughtful commentators see part of President Trump’s motivation for the US interventions in Venezuela and Iran as being to deny China cheap oil. The Chinese economy will certainly take a hit and that could make China even more assertive in defending its perceived geopolitical interests.

The EU is already acting, for example through its Industrial Accelerator Act to protect its economy from unfair Chinese competition. The war will further accelerate the global race for resources. So if the UK remains outside the EU’s drive for more ‘strategic autonomy’ in areas such as access to raw materials, we risk becoming ever more isolated. We cannot compete with highly interventionist trade and supply chain policies from three well-resourced behemoths at once – the US, China and the EU.

Environment, migration and populism

The war is causing catastrophic damage to the environment in the region and experts fear global ecological damage. With the US opting out of global environmental cooperation, coordination between the EU and UK has become all the more important. Environment policy is also inextricably linked with energy policy – as European Commission Vice-President Teresa Ribera said last week, the only way to protect our energy supply from turbulence in fossil fuel producing regions is to speed up the drive for clean and renewable energy. From the UK’s point of view, this is best done by working closely with the EU, until we can join it and argue within it for ambitious policy choices.

The war will create refugees. If it leads to internal conflict in Iran and/or to economic collapse, the numbers fleeing could increase significantly. Many will end up in Europe and some will want to come to the UK. The only way to deal with high levels of migration is through European-level cooperation. This – both in response to the Middle East situation and more generally - is a subject that should also be on the table in the EU-UK reset.

Finally, the war may boost populist parties across Europe, including the UK. In the short-term, Nigel Farage’s unpopular support for Trump is hitting Reform’s poll ratings. But come the next election, voters are likely to blame the government rather than Donald Trump for a darkening economic picture. More could turn to Reform. It is in the Labour government’s electoral interest to seize every opportunity to shore up the economy – and the biggest opportunity is to join the single market.

Time to come inside the tent

In other non-EU European countries, recent events have made public opinion more favourable to coming inside the EU tent. Iceland will hold on 29 August a referendum on reopening negotiations to join. The debate in Norway is at its liveliest for years. There is no doubt about Ukraine’s commitment to seeking membership, nor that of Montenegro or Moldova.

Meanwhile, the cost of staying outside will increase. European Commission President Ursula von der Leyen said on 8 March that the war in the Middle East is the latest illustration that the EU needs to focus on “using our strengths in pursuit of our interests.” That hard-nosed view is likely to get even harder.

Against a global backdrop of conflict and upheaval, the UK’s rightful place is more than ever inside the EU, contributing our own strengths and benefitting from those of our partners. Outside, we risk being buffeted between an unpredictable and detached US, an assertive and resource-hungry China and a new European realpolitik over which we have no influence.  

Today, European Movement UK has launched the petition for the UK to join the EU single market.

For six years the UK has been outside the European single market, our largest trading partner and closest neighbour. Being outside it has been a catastrophe for our businesses, with more unnecessary trade barriers, more checks, more paperwork, more delays, lost investment, lost growth, lost jobs and business, and a divergence of rules and standards from the world’s largest trading bloc.

Businesses across the UK are speaking more loudly than ever and, hand-in-hand with them, our message to the UK Government is clear: it’s time for the UK to join the EU’s single market.

To deliver the economic growth we need to fund our public services, we need, and are calling for, a full reset of our economic relationship with Europe. We are calling on the Government to:

• Seek to join the single market and customs union.
• Ensure any negotiated arrangement includes the restoration of freedom of movement.
• Include small and medium-sized businesses in future engagement with the European Union.

Together, we can make sure that the Government takes the voice of British business seriously at the negotiation table.

Sign the petition now.