Brexit continues to reshape UK industries, with producers feeling the strain of higher costs, added bureaucracy and slower supply chains. As PM Starmer promises a "reset" with the EU, some are warning of problems.

Londen

British businesses, such as textile producer Pennine Weavers, continue to experience increased costs and reduced productivity due to Brexit-related bureaucracy and trade barriers. Two-thirds of Pennine Weavers' sales are to European clients, and the company reports delays and higher expenses for shipping and spare parts, impacting their willingness to invest.

Prime Minister Keir Starmer is negotiating closer economic ties with the EU, described as a 'reset,' but business groups like the British Chambers of Commerce are calling for more ambitious agreements. The end of free movement has also led to skill shortages, prompting calls for a youth mobility scheme. The government faces growing pressure to finalize improved trade arrangements with the EU.

UK's Starmer faces uphill battle with Brexit 'reset'

The world's finest cloth, that's what Pennine Weavers in Yorkshire in the north of England aim to produce. Their fabrics find their way into the luxury garments of designers like Burberry and Armani. Two thirds of their sales are to European clients. Brexit has had a big impact on the small company with around 50 employees. There is no doubt that our product has become more expensive because of the fact of the extra layers of bureaucracy, the extra costs that businesses have had to incur in dealing with all the paperwork, the shipping costs, the freight costs. It all adds up to cost, so we haven't lost any actual customers, but I would suggest that we have lost business. Since Brexit, it also takes longer to get spare parts from the continent whenever a machine breaks down. Pennine Weavers' productivity has taken a hit. The UK Prime Minister Keir Starmer is negotiating closer economic ties with the EU. He calls it a reset. The British Chambers of Commerce are now calling on the government to be more ambitious. Exporters of food or agricultural products in particular have found the new bureaucratic obstacles for cross-border trade too much to deal with. Some have stopped trading with the EU altogether. We want to see very clear deals done, deals that shift the dial in terms of quicker, simpler, cheaper trade with the EU. Firms are tired of some of the costs, particularly agri-food companies, the extra burdens and delays, loss of product, additional costs from export health certificates. The EU remains the UK's largest trading partner. But trade intensity has dropped significantly since Brexit. And with the end of free movement, European talent is lacking in the UK, say the British Chambers of Commerce. They are calling for the government to finalise a youth mobility scheme that would allow young Europeans into the country for a limited time. What business has been telling us over the last five years is that they're seeing skill shortages. They've been telling us about the difficulties of being able to deal with the visa system, to get highly qualified applicants from the EU into posts and vacancies that are here in the UK. And we hear the same from EU employers as well. Until there are significant improvements in the relationship with the EU, exporters like Pennine Weavers are holding back investments. The investment decisions in this business, they're very large numbers. We have to have that confidence and unfortunately Brexit has taken away that confidence in our ability and our will to invest back into the business with capital machinery. Brexit continues to impact not only Pennine Weavers, but the whole British economy. The pressure on the government to push through and finalise their reset with the EU is growing. For more UN videos visit www.un.org

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