British firms are missing out on productivity gains by shunning overseas trade, according to one of the UK’s leading business bodies.
Just one in 10 British businesses are involved in overseas trade, reveals a fresh study published by the British Chambers of Commerce (BCC) yesterday.
Firms that are involved in exporting and importing goods and services tend to be more productive, boosting their chances of lifting profitability.
Slashing administrative barriers to trade after Brexit would help increase participation in overseas trade among British businesses, according to the BCC.
Shevaun Haviland, director general of the BCC, said: “The UK is bursting with amazing businesses offering goods and services that are high quality, sustainable and well designed.”
“There are hundreds of overseas markets which are crying out for what we can offer,” she added.
Making the VAT regime on trade more welcoming would also incentivise firms to engage in overseas trade.
“More also needs to be done by government to support UK companies that have had to battle with rocketing costs, disrupted supplies and reams of new paperwork in Europe,” Haviland added.