Government announces £20m Brexit support fund for SMEs

The government has encouraged SMEs who trade only with the EU and are therefore new to importing and exporting processes to apply for grants of up to £2,000 for each trader to pay for practical support, including training and professional advice to ensure they can continue trading effectively with the EU.

It said the fund has been set up to support businesses prepare for the new import controls coming into force from April and July, as set out in the Border Operating Model.

Further, SMEs will be provided with additional support with the fund administered through the pre-existing Customs Grant Scheme, with applications to be open from next month.

The government said it made the decision to introduce new import controls in three stages up to 1 July 2021 to allow traders and hauliers time to adjust to new processes, meaning businesses do not have to complete new import declarations for up to six months unless they are moving controlled goods.

The announcement follows extensive engagement with individual businesses, leading business organisations and trade associations from across all parts of the UK, including through the Brexit Business Taskforce.

Chaired by Michael Gove, the weekly meetings provided an opportunity to identify challenges and find solutions to outstanding issues.

Federation of Small Businesses national chair Mike Cherry said the announcement is “very significant”.

“Small businesses, often with few cash reserves, are for the first time facing complex new customs processes, VAT requirements and rules of origin,” Mr Cherry said.

“While many have come to FSB for help, we have been asking for proper financial assistance of this scale, so that a cash-strapped small business can afford to buy-in expertise, training and practical support.

“The new fund will make a significant difference, and we are pleased that ministers have really engaged with us on this, and come up with an excellent response.”