London Daily

Focus on the big picture.
Saturday, Jul 25, 2026

Boris Johnson had argued that freedom from European Union read tape would be one of the biggest wins for Brexit

From border delays to tariffs we were told wouldn’t exist, Brexit is wreaking havoc on our businesses

It wasn't meant to be this way. From border delays to regulation and tariffs we were told would not exist Brexit is wreaking havoc on many businesses.

Boris Johnson had argued that freedom from European Union red tape would be one of the biggest wins for Brexit - ever since he laid into “barmy Brussels bureaucracy” from his Daily Telegraph office in the city almost three decades ago. But 35 days on from Britain’s full departure from the bloc, there is no sign of the promised regulation dividend.

The Prime Minister said the new relationship has presented “teething troubles”. But as industry after industry — from fishing to fashion — lashes out publicly about logistical nightmares, it is clear the pain is far worse than the business equivalent of sore gums. It is now increasingly clear that the “tariff free” trade that business was promised was a lie. From customs to higher transport charges, the costs of doing business with our biggest trade partner are only going one way. The wrong way.

One problem was the frenetic “to the wire” nature of trade negotiations that ended with a deal on the afternoon of Christmas Eve — leaving just seven days for exporters and importers to get their heads round the 1,246 pages of the Trade and Cooperation Agreement.

Another issue has been the level of resourcing made available to companies that have to navigate their way through a new alphabet soup of forms, from the dreaded EORI to the formidable VI-1. We have spoken to wine importers trying to contact HMRC “call centres” that have no phone numbers, just email addresses that only elicit responses after three or four days.

We also heard how a successful manufacturer querying how to win Approved Exporter Status was told: “You’ll have to wait, mate, there’s 17,000 approved exporters and only six of us here in the team.” As he said, it all feels a bit, well, Dad’s Army. And the deal did not even address the vast majority of the Brexit issues facing London’s biggest industry, financial services, which only got four-and-a-half pages. Most of the hard negotiation is still to be done. So where are the key areas where things have gone wrong. And how can they be put right?

Borders and delays


Pre-Brexit stockpiling will only save us for so long. Selwyn Stein, managing director of advisory company VAT IT, said there is huge confusion at the border even with the current “softly softly” level of enforcement. “Border guards are unclear as to who has ownership of the goods — whether they should be in the name of the exporting company or the company receiving them,” he said. “This leads to huge delays and sometimes fines. Many freight companies are now just refusing to ship goods for UK companies because of the difficulties involved.” Goods that could be dispatched across Europe in 24 hours are now routinely taking two weeks to reach their destinations.

The solution?


It is essential that London and Brussels agree a simplification of border checks and paperwork.


Paperwork


So many new forms. Wine importer Daniel Lambert told us about one that will have to be filled in for wines coming in from the EU from July.

Since Brexit he has had to complete six pieces of documentation. The VI-1 will be a seventh. It requires information on alcohol levels, grape varietals, place of origin — all provided on other forms. He said: “This government wants wineries to confirm that their Bordeaux wine made in Bordeaux, which has already undergone local certification, is certified again as Bordeaux and then lab tested again to check it’s from Bordeaux. What a waste of time and money.” One household name fashion brand told us: “Before Brexit all we had to declare was: ‘It’s 100 per cent wool.’ Now we are having to give the weight, the origin of the wool, is it from Italy, Australia or New Zealand? It’s a huge burden, it’s going to cost us £5 million a year in extra administration.”

The solution?


Bring the documentation into the 21st century. So much is still paper based or antiquated. The CHIEF system for wine imports was designed in 1988. It all needs to be digitised as a priority.

Regulations


Exporters are having to comply with whole new books of regulatory smallprint. In many cases they have to meet EU standards and new parallel UK ones.

Mark Brearley, director of Queen’s Award for Export-winner Kaymet, told us about the nightmare he is having with the electric hot-plates he sells all over Europe. The company, based in Old Kent Road, self-certified that the product met EU safety standards to obtain the CE rating he required. Now, after Brexit, he needs to obtain a parallel UK CE rating to be able to manufacture and export. Mr Brearley said: “It’s all pain, no gain. I’m waiting for them to tell us what the mythical upside is.” Rules of origin regulations are also causing huge headaches, effectively reintroducing tariffs on goods that are made on the Continent and processed in the UK. In the most famous example, Marks & Spencer was unable to export Percy Pig sweets to its Continental and Irish stores because they fell foul of the rules. Manufacturers must declare where each component in a product was made or processed. In the worst cases this can mean documenting 50,000 components.


The solution?


The Government should provide grants or vouchers to the value of, say £3,000 so that business can access specialist advice. Also the Government’s own transition advisers are due to be stood down at the end of March. Their term should be extended.

Customs


We were told the trade deal would deliver a brave new tariff-free world. So it has come as a shock that consumers and businesses now have huge extra customs bills. One reader spent £334 on two shirts and a jacket from APC in France. On delivery he was told to pay £106.30 in extra customs and VAT “in cash or by cheque” before delivery could be made. He decided to send the goods back as he did not like them but they are stuck at Dover. He has no idea if he will ever get any of his money back.

The solution?


Simplify paperwork and make sure that all prices are quoted with all extra duties and taxes included.

Freedom of movement


Taking back control looks set to be a disaster for Britain’s creative sectors — the bedrock of our “soft power.”

Elton John

Mr Johnson was warned by a host of names from the fashion sector this week that the trade agreement has left a “gaping hole where promised free movement for goods and services for all creative, including the fashion and textiles sector, should be”. Yasmin Le Bon said it was crucial that models should be free to be assigned to a shoot with just a few hours’ notice. Music stars ranging from Ed Sheeran to Sir Elton John, Sting and Sir Simon Rattle have also accused the UK Government of “shamefully failing” performers by making Europe a “no-go zone”. A whole host of professions from architects, photographers, graphic artists and engineers are in the same boat.

The solution?


Agree to seek a deal on “Europe-wide” work permits for touring professionals and artists. Make up the shortfall in arts funding previously provided by Creative Europe. Without addressing these and other issues at the next round of trade talks, hopefully before Easter, Britain risks being a much poorer place - economically and culturally - when it emerges from the pandemic. Brexit has now exploded in the faces of so many businesses just trying to make a buck at the most difficult of times.

Newsletter

Related Articles

0:00
0:00
Close
High Street Sales Suffer Sharpest Summer Decline in Five Years
Wales Approves Higher Taxes on Second Homes and Long-Term Empty Properties
Environment Agency Imposes Record £150 Million Penalty on Water Companies
UK Competition Watchdog Blocks U.S. Takeover of Cambridge Chip Designer
Scotland Unveils Land Reform Bill to Expand Renewable Energy Projects
Northern Ireland Secures £500 Million Technology Investment for Belfast Cybersecurity Hub
NHS Rolls Out AI Triage System Across Major Hospitals in England
UK Strengthens North Sea Naval Cooperation With European Allies
UK Chancellor Commits £7 Billion to Accelerate Manchester-Leeds Rail Link
Bank of England Signals Interest Rate Cuts After Inflation Falls Below Target
Badenoch Rejects Grant Shapps' Bid to Return as Conservative Candidate
BAE Chief Warns Britain Has Underestimated the Risk of War
Burnham Rules Out New Scottish Independence Referendum in First Talks With Swinney
UK Government Strengthens Northern Economic Agenda Through Manchester Headquarters and Regional Partnerships
United Kingdom Opens New Furness Peninsula Coastal Route Under King Charles the Third England Coast Path
England Reduces Business Costs for Hospitality Sector Through New Relief Package
United Kingdom Allocates Seven Point Three Million Pounds for Zero-Emission Aviation Research
United Kingdom Begins Restoration Works on Portishead Railway Line After Six Decades Without Passenger Services
United States Tariff Measures Create New Trade Challenges for United Kingdom and European Union Businesses
Prime Minister Andy Burnham Meets Scottish and Welsh Leaders to Promote Regional Growth Cooperation
United Kingdom Government Announces Twenty Percent Business Rates Cut for Pubs, Clubs, and Music Venues
Prime Minister Andy Burnham Opens Manchester Government Headquarters to Shift Decision-Making Away From Westminster
United Kingdom Defence Ministry Says Armed Forces Ready After Iran Accuses London Over US Military Strikes
United Kingdom Inflation Falls to Two Point Six Percent as Prime Minister Andy Burnham Gains Economic Breathing Room
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Viral Video Raises Questions Over Twelve-Dollar Croissants at Manhattan Bakery
UK Balances Security Commitments With Economic Growth Priorities
Retail and Hospitality Sectors Navigate Consumer Caution and Tax Changes
Key Trends to Watch
British Land Appoints Joanne McNamara as New Chief Executive Officer
UK Government Names New Life Peers Including Former Military and Civil Service Leaders
Institute of Directors Urges Government Action on Employment Costs and Skills Shortages
IMF Raises UK 2026 Growth Forecast to One Percent
UK Retail Sales Growth Slows Sharply as Households Cut Discretionary Spending
UK Ten-Year Bond Yields Remain Above Five Percent as Government Faces Higher Debt Costs
UK Government Plans Earlier End to Low-Value Import Duty Exemption for Online Retail Parcels
Reform UK Leads Tight Westminster Voting Poll as Conservatives and Labour Remain Close
Royal Navy Carrier Strike Group Completes First Arctic and North Atlantic Mission Phase
Andy Burnham Government Cuts Business Rates for Pubs and Music Venues by Twenty Percent
UK Inflation Falls to Two Point Six Percent in June as Food and Fuel Prices Ease
Andy Burnham Becomes UK Prime Minister Facing Growth Challenges and Fiscal Pressure
UK Government Reviews Long-Term Balance Between Cost Relief, Industry Support, and Public Investment Priorities
BBC Could Receive Permanent Royal Charter Under Government Proposal
Northern Ireland Proposes End to Severe Weather Exemptions for Electricity Compensation Rules
Andy Burnham Holds Talks With UK Devolved Leaders on Regional Cooperation and Devolution
House of Lords Launches Inquiry Into Risks Facing UK Democratic Institutions
ScottishPower Renewables Plans Major Rebuild of Whitelee Wind Farm With Fewer Larger Turbines
UK and Italy Leaders Discuss Global Combat Air Programme and Future European Cooperation
UK Government Announces Six Hundred Million Pound Aerospace Investment Package at Farnborough Airshow
European Union Approves UK Participation in Ninety Billion Euro Ukraine Support Loan Framework
×