Pandemic and post-Brexit changes hampering trade in services - survey

The Covid-19 pandemic and new traded rules following the end of the Brexit transition period are continuing to have an impact on the UK 's trade in services, according to new figures.

The Office for National Statistics (ONS) says one third of businesses that reported experiencing challenges with exporting services - citing the pandemic and its associated restrictions as the main cause.

Businesses importing goods also reported experiencing challenges from Covid-19, as well as difficulties relating to the end of the transition period and new trading requirements

Compared to other G7 economies, the UK had the second largest percentage change (-23.8 per cent) in exports of services between Q4 2019 and Q2 2021, with only Italy experiencing a bigger change (-35.7 per cent)

According to the ONS, firms said that Britain 's exit from the EU continues to impact trade, with reports of difficulties finding staff in the UK, shortages of materials and additional paperwork and fees leading to increased costs.

Erin Henwood (pictured), policy adviser at Greater Birmingham Chambers of Commerce, said: “Given the extent of restrictions over the past two years, it is unsurprising that the UK 's trade in services has been hampered by the Covid-19 pandemic, as well as the additional pressures caused by complex new trading requirements.

“Though economic recovery is already well underway - with the UK economy nearly back to pre-pandemic levels - the emergence of the new Omicron variant will no doubt be causing unease amongst the business community.

“To alleviate businesses ' concerns, it is crucial that the Government clearly outlines how it plans to support businesses should Plan B be implemented. The introduction of any additional measures must be communicated in advance to give businesses time to prepare and adapt. ”