Brexit delay – Ready for Brexit
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Getting business ready for brexitFri, 04 Oct 2019 08:36:04 +0000en-GB
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1 https://wordpress.org/?v=5.2.3https://readyforbrexit.co.uk/wp-content/uploads/2018/04/cropped-ReadyforBrexit-website-32x32.pngBrexit delay – Ready for Brexit
https://readyforbrexit.co.uk
3232WMB Logistics owner explains how the No Deal threat leaves business in limbo
https://readyforbrexit.co.uk/wmb-logistics-owner-explains-how-the-no-deal-threat-leaves-business-in-limbo/
Thu, 03 Oct 2019 09:08:18 +0000https://readyforbrexit.co.uk/?p=24596Paul Lusty, owner and director of Gloucester-based specialist transport and logistics firm WMB Logistics, says it's very difficult to prepare even customs paperwork for Brexit when you don't know what paperwork is required
Ready for Brexit is independent and objective. It aims to help businesses and organisations manage the challenges and opportunities that Brexit brings. See member benefits 〉
Paul Lusty, owner and director of Gloucester-based specialist transport and logistics firm WMB Logistics, says it’s very difficult to prepare even customs paperwork for Brexit when you don’t know what paperwork is required
Can you explain what WMB Logisitics offers?
We are a specialist haulier. Our main business is transporting motor cycles. We distribute for two of the major manufacturers and we do shows and anything marketing wise for the rest of them. There are only two manufacturers in the UK that we don’t work with.
How much of your business is based in the EU?
Most of our business is based in the UK but a lot of the bikes come in from Europe. One of our manufacturers is in Austria, for example, and one of them is in America, but they ship in to their European distribution centre in Belgium.
How is Brexit likely to impact on WMB Logisitics?
We’ve taken the steps to be able to clear customs documents coming in to the UK for our customers. We’ve registered with Descartes, so we can clear customs for our customers coming in to the UK. But there is not a lot more we can do at this stage really, because we don’t know what’s happening.
One of the dilemnas we’ve got, and we’re used to dealing with things like carnets and customs paperwork, is we don’t know what type of customs paperwork we’re going to require. We’ve got a show at the NEC, the biggest bike show in the country, in November and we’ve got bikes coming from the Eicma bike show in Italy. They are being picked up on the 10th of November, so for instance, how do we get those bikes back into the UK, because nobody seems to know. We don’t know whether we’ve got to bring them in under carnet, because initially they are going from Germany to Italy and then they will come to the UK and then they will go back to Germany. So the Germans need to raise a carnet in theory for the bikes to come into the UK, but nobody can raise a carnet yet because the UK is still in the EU. So we’re just stuck. Everybody is in limbo really.
]]>Hattons Model Railways MD confident business will stay on track through Brexit
https://readyforbrexit.co.uk/richard-davies-hattons-model-railways/
Tue, 10 Sep 2019 19:52:49 +0000https://readyforbrexit.co.uk/?p=24282Richard Davies, managing director of Cheshire-based Hattons Model Railways, says that trading internationally has prepared him for following WTO rules in the event of a no-deal Brexit
Ready for Brexit is independent and objective. It aims to help businesses and organisations manage the challenges and opportunities that Brexit brings. See member benefits 〉
Richard Davies, managing director of Cheshire-based Hattons Model Railways, says that trading internationally has prepared him for following WTO rules in the event of a no-deal Brexit
How prepared is Hattons Model Railways for Brexit?
I’d like to think that we are well prepared. We are a pragmatic operationally focussed company. We have grown an awful lot over the last 20 years and that’s through being very practrical and very IT-oriented. We have put the customer first by letting the technology drive the business.
The vast majority of our stock is made in China, so we envisage that there may be a few delays for stuff coming in through China, but it’s not really a major problem as we don’t source much stock through the EU. With regard to the purchases of stuff to help us run the business, i.e. packaging materials, labels and card and that kind of thing, what we have done is forward bought an awful lot of what we need to cover us for at least eight weeks after Brexit day. We did this for the initial March deadline and again we have done this for the next deadline. These sundry items are not expensive, so it hasn’t had a big impact on our cash flow, but without them the whole operation could stop. If anything, the only problem it has caused us is finding storage space for it in the building.
What percentage of Hattons Model Railways’ customers are based in the EU?
Of our £17 million turnover about 10% of that is to outside of the UK and just over half of that it to within the EU. From our point of view, because we are a very tech driven company and because the average order value is over £100, having the right IT systems ready is the best we think we can do for when there is any change over or move to WTO rules, so we can easily modify our systems to make sure that we can carry on shipping through our normal services. The software that we use to facilitate our international shipments is called GFS Checkout. It is bulit in to our website ordering system and it will, if there are any changes i.e. in taxes, make that change automatically for us. We want to be transparent with customers with what we are doing and this system allows us to do that.
How has the fall in the value of the pound impacted on your business?
Well, after the referendum, when the pound crashed then what that meant for our international customers was that they were getting more for their money so we saw an increase in trade straight after the referendum. We have seen particular growth in custom from Australia and America since the fall of sterling, so that has been a benefit for us, but our costs are also going up for the products we are buying in. So it’s a bit foolish to celebrate the problems of sterling because they catch you on the other end. We do think that the pound is likely to fall further and with some of our suppliers in China we’ve actually paid some of our bills early and negotiated better rates.
We are one of the biggest firms in the industry and we try to be minimal hassle for everyone. I just wish Brexit was over with quicker really, but I suppose everyone feels the same way. I’m not daunted by moving to WTO rules, because we’ve been doing that for a long time with many other countries anyway.
]]>The Institute for Government explains why No Deal is harder to stop this time
https://readyforbrexit.co.uk/the-institute-for-government-explains-why-no-deal-is-harder-to-stop-this-time/
Mon, 12 Aug 2019 07:45:48 +0000https://readyforbrexit.co.uk/?p=23922Think tank the Institute for Government's latest white paper Voting on Brexit: Parliament's role before 31 October, outlines why a No-Deal Brexit will be much harder for Parliament to stop second time around. Anna Tobin reports
Ready for Brexit is independent and objective. It aims to help businesses and organisations manage the challenges and opportunities that Brexit brings. See member benefits 〉
Think tank the Institute for Government’s latest white paper Voting on Brexit: Parliament’s role before 31 October, outlines why a No-Deal Brexit will be much harder for Parliament to stop second time around. Anna Tobin reports
The Institute of Government research explains that when MPs return to Parliament after their summer recess there will be less than two months before the UK is set to leave the EU. The options the UK faces are the same as they were in March: leave with a deal, leave without a deal, seek an extension to the leaving date or unilaterally revoke Article 50.
What has changed though is the Prime Minister. Boris Johnson has made clear that if the UK is unable to leave with a renegotiated deal on 31 October then the UK will leave without a deal. And the Institute for Government says those MPs trying to make their voices heard will have far fewer opportunities to do so this time. Consequently, the Institute for Government paper concludes:
It is very unlikely the UK will be able to leave the EU with a deal on 31 October
MPs can express opposition to no deal but that alone will not prevent it
Backbenchers have very few opportunities to legislate to stop no deal
A vote of no confidence would not necessarily stop no deal
There is little time to hold a general election before 31 October
A second referendum can only happen with government support
]]>How Helping Hand Environmental plans to survive Brexit deal or no deal
https://readyforbrexit.co.uk/helping-hand-environmental-brexit-survival-guide/
Mon, 24 Jun 2019 05:27:32 +0000https://readyforbrexit.co.uk/?p=22603Lara Bryant, VP sales and marketing at Herefordshire-based litter clearance tools manufacturer Helping Hand Environmental, outlines how she plans to continue her company's global expansion despite Brexit
Ready for Brexit is independent and objective. It aims to help businesses and organisations manage the challenges and opportunities that Brexit brings. See member benefits 〉
Lara Bryant, VP sales and marketing at Herefordshire-based litter clearance tools manufacturer Helping Hand Environmental, outlines how she plans to continue the company’s global expansion, despite Brexit
This article is the view of the author and not necessarily of Ready for Brexit
Brexit has caused a lot of concern among British exporters whose key overseas trade is within the EU. With the outcome of negotiations, or lack of, still unknown, it is tricky for businesses to plan for the future to ensure a smooth transition.
However, as a British manufacturer and exporter, we have successfully grown our export business to Europe since the EU referendum in 2016. Despite the dual challenge of impending Brexit and competition from cheaper overseas manufacturers, our export revenue has increased by 750% in the last six years. We doubled our overseas sales from £450,000 to £986,000 between 2016 and 2017 alone and are now exporting to more than 20 countries worldwide, proving that with the right approach Brexit should not spell disaster.
This overseas revenue growth has resulted in our family-run company winning a prestigious Queen’s Award for Enterprise in International Trade this year, an accolade we’re incredibly proud of. So, here are our tips on how businesses can grow a global client base, despite the tricky economic conditions and uncertain future – based on our own experience:
1) Talk to your customers
Talk of a no-deal Brexit, hard borders and new tariffs have all triggered understandable concern that UK companies will lose many European customers, with some claiming they are already suffering negative impacts. However, there are ways to overcome these issues.
The key thing is to put the customers’ needs at the centre of everything you do. We have worked really closely with all our European customers to ensure we are in a strong position to allay any problems thrown up by Brexit, such as transportation delays or materials shortages. We have robust contingency plans in place to deal with potential hiccups. For instance, we have built up good stocks of our raw materials, so that we can continue to manufacture in the event of a slow-down in supply for at least 90 days.
Even now, no-one knows what is going to happen, but we were proactive in going to our European customers to discuss their concerns and needs to try to pre-empt any issues. For instance, if we have concerns about supply lines shutting down, we can ship products early or even send out the components and put the products together onsite.
Comprehensive preparation has reassured our customers that we remain the supplier best placed to provide them with quality products when they need them, deal or no deal.
2) Don’t compromise on quality
It may be tempting when faced with much cheaper overseas rivals to cut costs wherever possible and compromise the quality of your products. We would warn against this. Customers will pay for quality. The reason the ‘Made in Britain’ tagline is a powerful one is that it is associated with top-quality products.
We have more than 50 years of technical expertise in producing litter clearance tools for local authorities, waste management companies and major brands keen to add litter clearance to their CSR [corporate social responsibility] activities. This has enabled us to refine and innovate to ensure our products are the best available in terms of design, function and durability. We cycle test our litter pickers to 500,000 repetitions.
All this requires investment, but the result is incomparable quality and ergonomics proven from one generation to the next. Our customers trust we will provide them with quality products to CE and ISO standards.
Due to higher overheads, material and staffing costs than south-east Asian rivals, there is no doubt there are far cheaper alternatives out there. Yet our customers across dozens of countries remain loyal because they are happy to pay for better quality. With a much longer lifespan than cheaper versions, our products ultimately offer better value. There is a lesson for everyone there.
3) Keep it green
As our company name, Helping Hand Environmental, suggests, we really care about the environment. As well as our mission to make the whole world litter free and divert as much rubbish as possible from landfill to recycling, we also constantly look for new ways to minimise our environmental impact. From manufacturing as much as possible using recyclable materials to recycled compostable packaging, we aim for zero waste. We also produce recycling kits alongside our products, which can extend their lifespans by 300%.
Our customers care about the carbon footprint of the products. They are working with us to boost their environmental credentials, so it would significantly undermine this if they were to source their tools from a company with a terrible environmental record.
Thankfully, there is also a wider trend towards consumers and companies holding their suppliers to account when it comes to responsible manufacturing and production. Across Europe, more consumers now demand strong environmental credentials when they buy, governments are legislating to reduce emissions and waste and this has a knock-on effect across all markets. Going greener pays in more ways than one.
4) Add value
We refer to ourselves as an anti-litter consultancy and there is a good reason for this. Having supplied the litter collection industry and worked with countless councils, charity projects and national and international campaigns we have a breadth of experience and network of contacts in this area that is unrivalled.
As well as supplying more than 90% of all local authorities in the UK, we are the official partners for environmental charities and campaigns in the UK and Europe from Keep Britain Tidy and Keep Scotland Beautiful to Nederland Schoon in Holland and Limburg.net in Belgium.
We worked with 346,012 litter pick volunteers in the first three months of this year alone, providing them not just with litter-pick tools, but also educational and promotional materials.
This has led to major global brands including McDonalds, Coca Cola and Costa approaching us in relation to their CSR and charity work. Due to our knowledge, experience and network of partners, we can act as a valued advisor on new environmental litter clearance projects and help link up community groups with local authorities, charities and businesses looking to fund such projects.
We are not solely focused on commercial gain, but we have a long-term view on developing sustainable relationships. Our business has grown in tricky conditions because we exceed our customers’ expectations – both at home and abroad – and other UK businesses must do the same.
]]>Brexit set to stall economic growth in 2020 and beyond forecasts BCC
https://readyforbrexit.co.uk/brexit-set-to-stall-economic-growth-in-2020-and-beyond-forecasts-bcc/
Mon, 17 Jun 2019 09:57:10 +0000https://readyforbrexit.co.uk/?p=22559The British Chambers of Commerce's latest economic forecast downgrades its growth forecast for 2020 to 1% (from 1.3%) and to 1.2% (from 1.4%) in 2021. Anna Tobin reports
Ready for Brexit is independent and objective. It aims to help businesses and organisations manage the challenges and opportunities that Brexit brings. See member benefits 〉
The British Chambers of Commerce’s (BCC) latest economic forecast downgrades its growth forecast for 2020 to 1% (from 1.3%) and to 1.2% (from 1.4%) in 2021. Anna Tobin reports
Published today, the latest BCC economic forecast upgrades its growth expectations for the UK in 2019 to 1.3%, up from 1.2%. This is driven by the Brexit-related stock-piling leading up to the original March Brexit day, but it downgrades its growth forecast for 2020 to 1% (from 1.3%) and to 1.2% (from 1.4%) in 2021.
Business investment is forecast to contract at a faster rate in 2019 and recover more slowly in 2020 than previously forecast. Investment activity is found to be slowing as a result of the uncertainty surrounding Brexit, including the growing possibility of a no-deal exit; the high upfront cost of doing business in the UK; and the running down of excess stock.
Trading conditions for UK exports is forecast to weaken due to a combination of exchange rate volatility, Brexit uncertainty and a subdued global economy. Consumer spending, however, is expected to remain resilient with earnings growth forecast to continue to exceed price growth over the forecast period and unemployment forecasted to remain low by historic standards.
“While politicians are distracted, businesses are left with no choice but to try and prepare for the unwanted possibility of leaving the European Union on 31 October 2019 without a deal and transition period. Businesses are putting resources into contingency plans, such as stockpiling, rather than investing in ventures that would positively contribute to long-term economic growth. This is simply not sustainable. Business communities expect the next Prime Minister to quickly find a sensible and pragmatic way forward to avoid a messy and disorderly Brexit,” said Adam Marshall, director general of the BCC.
“The UK’s low-growth trajectory makes clear that we can’t afford for Westminster to keep turning a blind eye to the domestic agenda. The upcoming Comprehensive Spending Review is an opportunity for the next government to affirm its commitment to support economic growth, including investment in the skills and training system and infrastructure projects, such as high-speed rail and the city regeneration schemes linked to them. Businesses will also be expecting action to alleviate the heavy burden of upfront costs, which stunt growth.”
]]>Rocket Software’s Guy Tweedale tells tech sector prep for worst Brexit outcome
https://readyforbrexit.co.uk/rocket-software-vp-tells-tech-sector-prep-for-worst-brexit-outcome/
Tue, 04 Jun 2019 10:42:16 +0000https://readyforbrexit.co.uk/?p=22480Guy Tweedale, regional vice president at international business software provider Rocket Software, advises the tech industry to prepare for the worst Brexit scenario and hope for the best
Ready for Brexit is independent and objective. It aims to help businesses and organisations manage the challenges and opportunities that Brexit brings. See member benefits 〉
Guy Tweedale, regional vice president at international business software provider Rocket Software, advises the tech industry to prepare for the worst Brexit scenario and hope for the best
After months of uncertainty and speculation, Britain finally got the answer – sort of. Brexit has been delayed until October 31, a rather fitting date, considering the feeling of terror that Brexit might evoke across businesses. But what is scare story, what is reality? Yes, we’ve slipped back into prolonged ambiguity ,which breeds further uncertainty, and uncertainty is bad for business. Especially for the tech industry – an industry that, by definition, demands innovation, quick action and forward planning in order to stay on the pulse – this delay represents maddening frustration. However, we Brits are a resilient lot and instead of shaking in our boots, waiting for the inevitable, we can pull them up and spring to action right now. So, what can we do while we await our fate?
Investing in growth
The latest release from the Office of National Statistics reveals that total business investment has fallen for the fourth consecutive quarter – the first time this has happened since the 2008 financial crash. In particular, the report shows that the information and communication technologies (ICT) sector has suffered significantly, with investment down 4.9% on the previous year, and 2.7% on the previous quarter alone.
While these figures are concerning, it is important to remember the position they’re falling from. The UK is tech-rich, full of enterprising start-ups and established companies. London is still considered the leading tech hub in Europe, and in 2017, the UK secured €7.1 billion in start-up funding. Testament to its strength, the UK tech industry has proven to be remarkably resilient despite the uncertainty since the referendum: it has continued to produce innovative start-ups and AI-enabled products, as well as attracting significant levels of investment.
The concern is how long this resilience will prevail. While the Brexit delay reduces the likelihood of no-deal – condemned by business experts across all sectors – it does little to reassure investors and customers of future stability. Investment is slowing down, and parliamentary indecision is beginning to threaten the UK’s reputation as world leaders in the technology industry. We need to ask ourselves: How can we remain on top of the leader board?
Even before the Brexit extension was agreed upon, a third of UK businesses considered moving some operations abroad, but this comes with a new set of challenges – data is one. Once out of Europe, all the hard work to be compliant with the General Data Protection Regulation (GDPR) will have been for nought, as a new agreement to move data between the UK and EU countries will have to be put into place. As this is likely to take a couple of fruitless months, larger companies have already moved to open-data centres in mainland Europe. These cloud-based solutions allow businesses to stay agile and rapidly respond to any changes, but in the event of a no-deal Brexit, the UK will become a ‘Third Country’, making it difficult to access EEA cloud data from the UK. By relocating parts of the business, this can be circumvented.
Recruitment
Any Brexit deal that abolishes freedom of movement will hinder the UK’s ability to recruit the best European talent, making it harder to remain competitive. Roughly one in five existing Londonworkers in the tech industry are from the EU, and it’s still unclear what Brexit will mean for their futures in the UK, however, mass deportation of EU employees is highly unlikely. Instead, companies need to prepare their staff to actually stick around, making sure that employees are aware of their eligibility to apply for British citizenship or settled status – before Britain leaves the bloc.
Casting a wider net on our own shores is another option to prevent the widening of the already existing skills gap. Traditionally plugged by the EU labour market, Eastern Europe in particular, has provided a dependable stream of IT and mainframe talent for companies based in the UK. With this option probably no longer available come October, British businesses need to move quickly to ensure that they aren’t left without a skilled workforce, especially when it comes to areas where demand is already outstripping supply, as it is the case with mainframe skills. Businesses need to train their staff and offer apprenticeships in order to make sure that the necessary skills are available. As part of the tech industry working with mainframes, we need to shout the loudest to make sure potential talent is aware of what’s on offer.
Moreover, the world does not end outside the EU. Turning recruitment strategies to other countries outside the bloc, local labour laws and specific remits permitting, the skill gap does not need to become an even bigger issue post-Brexit.
Don’t play the waiting game
What is worse than uncertainty? The inability to act. Luckily, this is not the case when it comes to the Brexit extension. The UK tech industry might not be able to control what the final decision will be, but in the meantime, we can start preparing for the worst-case scenario. In fact, if we are well prepared, the worst case might not even happen. Yes, this uncertainty costs. It costs our businesses time and money; it needlessly tests the temperament of our workforce, and; it threatens to unsettle our position as global leaders in the technology sector. But amidst these gloomy observations, we should bear in mind that the UK – from the perspective of the tech industry at least – is heading into Brexit from a position of great strength. The talent and research emerging from the UK market rivals anywhere in the world. If our tech industry is to retain this strength, we must continue to move forward and keep an open mind. There is no time like the present.
]]>It’s taking SMB Bearings MD Chris Johnson months to get Trusted Trader status
https://readyforbrexit.co.uk/its-taking-smb-bearings-months-to-get-trusted-trader-status/
Wed, 08 May 2019 12:59:12 +0000https://readyforbrexit.co.uk/?p=22224Chris Johnson, managing director of Oxfordshire-based bearings supplier SMB Bearings, explains the frustrations that beset an SME trying to make a living in the Brexit era
Ready for Brexit is independent and objective. It aims to help businesses and organisations manage the challenges and opportunities that Brexit brings. See member benefits 〉
Chris Johnson, managing director of Oxfordshire-based bearings supplier SMB Bearings, explains the frustrations that beset an SME trying to make a living in the Brexit era
How much of SMB Bearings trade is with countries within the EU?
We are wholesalers of specialist bearings and probably 40% of our business is with the EU. We sell to companies all over the EU.
Many companies have set up EU outposts to circumnavigate some of the issues that Brexit may throw up, have you considered this?
I did look at it. One possibility was to set up a distribution warehouse in Dublin, for example, but we can’t really do that without knowing what is going to happen. It would mean taking on a warehouse with a commitment to possibly five years, employing a couple of people to work there to pack goods up and ship them across the EU and, if we come to a sort of arrangement where there is frictionless trade with the EU, then obviously we would have to get rid of the warehouse and get rid of the staff. I felt I couldn’t really do that. If the planning had been very clear from the outset, if we’d been told right you have two years and at the end of two years it’s going to go to WTO rules, then you can get on and do something about it, but because we never knew and we still don’t know its very difficult to plan.
What has been the reaction to Brexit from your clients in Europe?
Well a lot of them say we hope that this is not going to be a problem, but they do want to know what is going to happen. Our response is we don’t know, we are doing everything we can to plan. We have recently had authorisation for Inward Processing Relief, for example, whereby you can bring goods in and then as long as you prove that they are to be re-exported outside of the EU or, if we have left completely, outside of the UK, you can reclaim the duty. Which means that we can compete price-wise because we are not paying the duty coming into the UK and then having our customers pay duty if the goods go into the EU. The other thing that we have started applying for is Trusted Trader status, we started applying for this about seven or eight months ago.
Why is it taking so long to obtain Trusted Trader status?
Because everybody is trying to do the same! When we started it was not as busy as it is now, but we’re working with a consultant, a former customs officer, and we’ve been told it’s gone completely mad and customs are being overwhelmed. We’ve been told that customs don’t really have the right people, and a lot of the older people who know how everything works are taking early retirement because they don’t want to have to train up all the new people who are coming in. The person who is helping us says that you put a question to customs and you get an answer and then you put the same question to somebody a week later and you get a different answer, that’s how crazy it is at the moment, they are just struggling.
Have you looked at increasing your trade with the rest of the world?
We are doing more, but it’s difficult to break into new markets in a big way. It takes time, you can’t quickly replace a whole network of established customers right across the EU.
What was your feeling when the original Brexit date was delayed?
I suppose there was a sense of relief in as much as it means that there is still a possibility that they will do some kind of deal along the lines of a customs union or I think a lot of people like me, a lot of business people, just hope that the whole thing will go away and people will get fed up with it and just go forget it, forget we ever had a referendum. Although I know it’s not going to happen.
]]>Brexit delay boosts consumer spending reveals Barclaycard
https://readyforbrexit.co.uk/brexit-delay-boosts-consumer-spending-reveals-barclaycard/
Wed, 08 May 2019 08:27:04 +0000https://readyforbrexit.co.uk/?p=22214Data from Barclaycard shows the Brexit delay encouraged consumers to start spending again, but six in ten consumers expect no change to their spending plans in May as they remain cautious. Anna Tobin reports
Ready for Brexit is independent and objective. It aims to help businesses and organisations manage the challenges and opportunities that Brexit brings. See member benefits 〉
Data from Barclaycard shows the Brexit delay encouraged consumers to start spending again, but six in ten consumers expect no change to their spending plans in May as they remain cautious. Anna Tobin reports
Consumer spending rose 2.5% year-on-year in April and Barclaycard data, which covers nearly half of the nation’s credit and debit card transactions, shows that essential expenditure grew by 6.2% in April; this was bolstered by a strong performance from supermarkets, which saw 5.8% growth; and an increase in petrol spending of 4.9%.
Non-essential spending grew just 1.2%, however, and spending on clothing contracted by 5.2%; as did electronic stores and department stores at 2% each. The travel industry also saw a decline, with airline spending falling into negative territory at -4.8%, which is the lowest figure recorded since Barclaycard started tracking this data in 2015.
The Brexit delay, along with the warm and sunny Easter weekend, is thought to have contributed to the slight rise in consumer confidence. In April, 33% of consumers reported feeling confident about the UK economy, compared to 26% in March.
Consumers are expected to exercise caution in May, with six in ten expecting no change to their spending plans this month; and only one in ten suggested they are likely to spend on big-ticket items, this is thought to be down to the Brexit delay.
“Warmer temperatures, especially over the Easter weekend, led many consumers to spend on experiences and dining out. Overall consumer spending in April has remained relatively modest, with the retail sector continuing to struggle,” says Esme Harwood, director at Barclaycard. “While the Brexit delay seems to have brought some short-term relief to consumer confidence, it’s clear that many shoppers still remain cautious about making any big-ticket purchases such as holidays, a new car or investing in home improvements.”
]]>Do I need to register for EORI? Yes – why it’s worth doing now
https://readyforbrexit.co.uk/do-i-need-to-register-for-eori-yes-why-its-worth-doing-now/
Tue, 07 May 2019 16:37:51 +0000https://readyforbrexit.co.uk/?p=22188Whatever happens over the next few weeks or months, if you trade with the EU and/or are considering trying new trade routes outside of the EU, it's worth applying for an EORI number now. It's free and it takes ten minutes.
Ready for Brexit is independent and objective. It aims to help businesses and organisations manage the challenges and opportunities that Brexit brings. See member benefits 〉
If you trade with the EU and/or are considering trying new trade routes outside the EU, it’s worth applying for an EORI number now. It’s free and it takes ten minutes.
An Economic Operator Registration and Identification (EORI) number is currently required to trade goods with countries outside the EU. So even if the UK does a trade deal with the EU, it’s still worth importers and exporters having that EORI number. You can then quickly expand your trade outside Europe and further develop your business. There is really nothing to lose by applying.
All you need to apply for an EORI number is your VAT number and effective date of registration, if you’re VAT registered; your ten-digit Unique Taxpayer Reference (UTR); your business start date and Standard Industrial Classification (SIC) code; and your National Insurance number, if you’re an individual or a sole trader. The actual application process should take no longer than ten minutes and you should have your number within three days. Apply for one here.
After Brexit, the rules and regulations for working with EU and non-EU countries will also likely change – possibly quite dramatically. This official country-by-country guide to exporting after EU exit provides critical information on what you need to expect.
The more homework you do now, the better prepared you will be for all Brexit eventualities.
]]>Brexit’s caused hiccups but it hasn’t put the brakes on this motorhome business
https://readyforbrexit.co.uk/brexit-caused-hiccups-but-it-hasnt-put-the-brakes-on-the-motorhome-business/
Thu, 02 May 2019 13:20:20 +0000https://readyforbrexit.co.uk/?p=21982Ross Edwards, managing director of Staffordshire-based premium brand motorhome dealer, Erwin Hymer Centre Travelworld says Brexit has knocked everyone's confidence but the motorhome business is still booming
Ready for Brexit is independent and objective. It aims to help businesses and organisations manage the challenges and opportunities that Brexit brings. See member benefits 〉
Ross Edwards, managing director of Staffordshire-based premium brand motorhome dealer, Erwin Hymer Centre Travelworld, says Brexit has knocked everyone’s confidence but the motorhome business is still booming
How has Brexit affected Erwin Hymer Centre Travelworld so far?
A fall in confidence is probably the biggest single factor that we’ve seen, particularly in the last six months leading up to the original leave date. We are in the leisure industry, but we are at one end of it. The leisure industry starts from anything from tents to touring caravans and then up to motorhomes and we specialise in motorhomes and we import exclusively from Germany. Confidence in terms of the consumer over the last six months has been a been a huge factor. The other major factor for us has been the exchange rate and the negative impact that Brexit has had on the exchange rate. That has put the cost up for the consumer for our products.
Are people happy to pay the extra?
There are always fluctuations with currency. It’s Brexit this time, but there have been other factors over the last ten years that have affected it negatively and positively. We deal with quite a high-end product and so it absorbs the changes probably easier than other products. Those competing in a very price sensitive area are probably more affected than we are. And, as it came in over a slow period, it wasn’t so instantly recognisable, but yes obviously when you make anything more expensive it’s harder for the consumer to afford the product.
In our industry in general, however, motorhome sales have continued to grow. Two years ago I think we saw the highest level of new motorhome sales in the UK ever. Then we had another 10% increase last year on top of that, so in terms of the statistics and the analysis it is not slowing down the overall purchases of motorhomes.
What contingency plans had you put in place for the original Brexit day?
The Government was very late in their suggestions to businesses that we should all plan for Brexit and certainly, from an SME perspective, it is very difficult to plan for, especially when you don’t know what it is and what is going to happen.
In the months leading up to the original date, we probably imported twice as much stock than we ordinarily would have done for that period of time, but outside of that, it was very difficult for us really to make any contingency plans. We’ve spent the last ten years investing a lot of money and building relationships with the German brands that we represent because they are in our opinion the best brands in Europe, so we have a very specific niche strategy around the brands and these products and we’ve made a success of that. It wasn’t like we could suddenly stop dealing with Europe and start selling British brands because that went totally against what we’ve been working on for the last ten years.
How receptive have your German suppliers been to helping you through this uncertain period?
There is a lot of media over there about Brexit and they’re a bit bamboozled about the whole situation, just as we are. But we have strong relationships with our suppliers and because they are a very big supplier, they very kindly fixed the currency as a supplier for the product for the entire season. So for over a twelve-month season within the product range, they fixed the currency in sterling for the customer, so the price won’t fluctuate. And they have also fixed the purchase price for the dealer as well. So that’s a big element that we have to protect us. So although unfortunately we have a price increase because of the currency, we have total stability throughout the season in terms of the fluctuations of the currency from there and that has been a big help to us.
Did you look at setting up in the EU as part of your Brexit prep?
Our market is the UK, it wasn’t really a strategy that was going to work for us. We’ve also just invested a huge amount of money in building a new dealership which we literally completed in February. It’s been a five-year project for us, so the idea of looking into having new outlets abroad, it just wasn’t a possibility for us at the time.
How do you view the delay, has it helped you or did you just want Brexit to be decided by now?
I was very much a remainer, but now I just want it done. From our business perspective, we just needed relief of one form or another, whether it was kicking the can down the road or whether it was getting the deal done. Either way, it’s certainly released the cloud over people. With our product, it suffers very much from confidence in the market place. We are seasonal and winters are tough for us anyway, but it was very hard before leaving through March and then when it appeared that it wasn’t going to happen in April it was literally like the taps turned on again. Now that everything has been put back until October I think everyone just wants to get on with their lives.