Exports slump is only short term - Chamber

The Chamber has labelled the post-Brexit slump in exports to the European Union as 'inevitable ' - but only short term.

The exports crash has been reported by the Office of National Statistics (ONS), which said exports to Europe fell by 40.7 per cent in January.

This drop equated to some £5.6 billion, and it also meant that trade between the UK and the EU - the country 's biggest trading partner - shrank by 2.9 per cent in January.

Various elements have been blamed, including the introduction of red tape for exports which has followed Britain 's final bowing out of the European Union, but also the coronavirus crisis.

The ONS cautioned that the January slump was a blip, and said: “November and December 2020 saw increasing imports and exports of goods, particularly in machinery and transport equipment and chemicals.

“These increases were consistent with potential stockpiling of goods from the EU in preparation for the end of the EU exit transition period.

“UK goods imports from the EU also peaked in the weeks approaching previous Brexit deadlines in March and October 2019. ”

The ONS said that despite the slow start for trade in January, data showed that importing and exporting had begun to increase towards the end of the month.

Chamber international business manager Stefanie Bowes (pictured) said: “It was inevitable that we would see a change in January figures, but this was only ever going to be short term.

“Businesses have adapted well and our focus here at the Chamber is making sure that Businesses who are still facing challenges are given the support they need to trade successfully with the EU. ”