LawBite Business Momentum Tracker
The LawBite Business Momentum Tracker Survey provides quarterly insight into how businesses are coping with the implications of the government’s trade agreement and its impact on the ambitions of ‘Global Britain’.
Key Findings
Our 2021 Q1 survey looked to understand how businesses have been affected by Brexit, how supported they feel they are by the government and how businesses are viewing their business outlook in 2021 due to Brexit. Using Attest, we surveyed 1,000 UK businesses across the UK, from retail to manufacturing, and found:
- Third of companies haven’t been given adequate tools to help them trade in the EU
- Half of companies across the UK believe their business prosperity will standstill in 2021
Our Survey, in depth
Since the transition period came to an end on January 1, millions of SMEs have encountered increased costs due to extra border checks and paperwork.
The Business Momentum Tracker Survey has revealed that over a third (35%) of businesses still lack the legal support needed to address these issues and facilitate trade with European countries, particularly those in Energy, Utilities, Oil and Gas (50%), as well as the Shipping and Distribution industry (57%).
Unsurprisingly, sectors hit harder by the pandemic were less concerned by the new trading regime as they continue to grapple with government enforced lockdowns, with 32% of Retail, 43% of Aviation and 44% of Bio-Tech less concerned by Brexit and finding the transition easier.
Do you feel that the UK Government is providing the necessary tools to help you trade better with the EU?
- 35% of businesses said that the government is not providing the necessary tools to help them trade better with the EU.
- 33% of businesses said that the government is providing the necessary tools to help them trade better with the EU.
- 22% of businesses said that they are unsure that if the government is providing them with the necessary tools to help them trade better with the EU.
Sector
- Agriculture/Fishing - 39% No
- Automotive - 46% No
- Aviation - 43% Yes
- Banking/Financial - 37% No
- Bio-Tech - 44% Yes
- Construction - 32% No
- Consulting - 44% No
- Energy/Utilities/Oil and Has - 50% No
- Fashion/Apparel - 38% No
- Healthcare - 33% No
- IT - 46% Yes
- Legal/Law - 40% No
- Manufacturing - 43% No
- Retail/Wholesale - 32% Yes
- Shipping/Distribution - 57% No
More worryingly for the UK economy, as it seeks to bounce back from a third national lockdown, the survey found that half of businesses (50%) expect prosperity to standstill in 2021, while over one in ten (12%) believe it will diminish as a result of the current trading environment.
The survey also revealed how almost half (42%) of firms believe Brexit has negatively impacted the ease of importing products from the EU, followed by price changes within supply chains (39%), as well as the ease of exporting products to EU customers (38%). Lastly, in what will frustrate advocates in government for a ‘Global Britain’, almost two fifths of companies (38%) claim it has negatively impacted their plans to increase trade abroad.
Conclusions & key takeaways
The survey results demonstrate why the government must urgently look at how they can improve access to legal support for SMEs, with a large number of businesses experiencing a lack of support from the government in this post-Brexit trading environment.
These businesses have historically been excluded from an overpriced and inaccessible legal services sector, and now more than ever it’s time for change.
Do you feel that the UK Government is providing the necessary tools to help you trade better with the EU?
- 35% of businesses said that the government is not providing the necessary tools to help them trade better with the EU.
- 33% of businesses said that the government is providing the necessary tools to help them trade better with the EU.
- 22% of businesses said that they are unsure that if the government is providing them with the necessary tools to help them trade better with the EU.
How do you currently feel about your general business prosperity in 2021 (not just related to Brexit)
- 50% of businesses said that business prosperity will standstill due to Brexit in 2021.
- 39% of businesses said that business prosperity will be good and grow due to Brexit in 2021.
- 12% of businesses said that business prosperity will be bad and likely to diminish due to Brexit in 2021.
Sector
- Agriculture - 45% Good
- Automotive - 58% Neutral
- Aviation - 50% Neutral
- Banking/Financial - 45% Good
- Biotech - 49% Good
- Construction - 57% Neutral
- Consulting - 44% Good
- Consumer Electronics - 60% Neutral
- Energy/Utilities/Oil and Gas - 60% Neutral
- Fashion/Apparel - 48% Neutral
- Healthcare - 54% Neutral
- IT - 54% Good
- Legal/Law - 51% Neutral
- Manufacturing - 60% Neutral
- Pharmaceuticals - 67% Good
- Retail/Wholesale trade - 57% Neutral
- Shipping/Distribution - 71% Neutral
- Transportation - 47% Neutral
Has your business been affected by Brexit since January 1st 2021? (Positively or negatively)
- 37% of businesses said general sales volume had been negatively impacted by Brexit.
- 38% of businesses said plans to trade with the EU had been negatively impacted by Brexit.
- 31% of businesses said recruitment of skilled staff from the EU had been negatively impacted by Brexit.
- 34% of businesses said availability of raw materials had been negatively impacted by Brexit.
- 38% of businesses said ease of exporting products to EU customers had been negatively impacted by Brexit.
- 42% of businesses said ease of importing products from the EU had been negatively impacted by Brexit.
- 32% of businesses said the number of enquiries coming from EU customers had been negatively impacted by Brexit.
- 39% of businesses said price changes within their supply chain had been negatively impacted by Brexit.
- 31% of businesses said complying with new rules, such as GDPR and the handling of private data had been negatively impacted by Brexit.
About the Business Momentum Tracker
Source: Attest
Targeting:
Employment Sector: Agriculture/Fishing, Automotive, Aviation, Banking/Financial, Bio-Tech, Chemicals/Plastics/Rubber, Consumer Packaged Goods, Consumer Electronics, Consulting, Construction, Legal/Law, Manufacturing, Transportation, Shipping/Distribution, Retail/Wholesale trade, Pharmaceuticals, Information Technology/IT, Healthcare, Fashion/Apparel, Energy/Utilities/Oil and Gas, Professional Experience: C-Level (e.g. CEO, CFO), Owner, Partner, President, Vice President (EVP, SVP, AVP, VP), Director (Group Director, Sr. Director, Director), Manager (Group Manager, Sr. Manager, Manager, Program Manager)
Survey Running Date:
23 February 2021- 25 February 2021
