Government warns time is running out for businesses to prepare for EU exit

Business leaders have been urged not to get caught out by new rules at the end of the transition period by Prime Minister Boris Johnson and Chancellor of the Duchy of Lancaster (CDL) Michael Gove this week.

In a call with business leaders, the Prime Minister and Mr Gove have asked businesses to step up their efforts to get ready for the changes in just over 8 weeks.

The call to action comes as the government launches the latest phase of its public information campaign emphasising the increased urgency to prepare for the end of the UK transition period with the strapline “Time is running out”.

HMRC has also written to 200,000 traders who trade with the EU to set out the new customs and tax rules coming into place and how to deal with them.

This follows a clear direction from the Prime Minister that the whole UK must prepare to leave the EU on Australia-style terms based on simple principles of global free trade, after the European Council conclusions last week left the UK "without a basis" to continue trade negotiations if there was no fundamental change in the EU’s negotiating position.

"At the end of this year we are leaving the EU Single Market and Customs Union and this means there are both new challenges and new opportunities for businesses. Make no mistake, there are changes coming in just 75 days and time is running out for businesses to act," said Mr Gove.

'It is on all of us to put in the work now so that we can embrace the new opportunities available to an independent trading nation with control of its own borders, territorial waters and laws."

Recognising the impact of coronavirus on businesses’ ability to prepare the UK has also taken the decision to introduce new border controls in three stages up until 1 July 2021. However, the focus of the XO committee is now firmly on making sure businesses are ready for the changes and opportunities ahead.

"With just 75 days until the end of the transition period, businesses must act now to ensure they are ready for the UK’s new start as an independent trading nation once more. There will be no extension to the transition period, so there is no time to waste," said Business Secretary Alok Sharma.

"There will be a guaranteed set of changes for which businesses need to prepare for, so I urge all businesses across the country to check gov.uk/transition to see what action they need to take.

"Businesses have a crucial role to play in ensuring a smooth transition, and the government will be there to support them through this change every step of the way," Mr Sharma noted. 

Earlier this week, small businesses asked for more clarity on the UK’s future relationship with the EU, noting the hardship of simultaneously managing a fresh set of COVID restrictions.

“A lot of small businesses have shelled out thousands to make their premises safe at a time when they had little or no revenue coming in only to be told to close. If the government wants firms to step-up preparations for a new relationship with the EU it needs to make doing so financially viable," said Federation of Small Businesses national chairman Mike Cherry.