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‘Staggering’ cost of Brexit red tape for UK businesses revealed
An analysis of official HMRC figures estimates that UK businesses spent at least £7.7bn handling customs paperwork for trade with the EU between 2022 and 2025. The figures renew debate over Brexit’s economic costs, with business representatives saying the additional administration makes exporting more expensive and contributes to reduced trade.
The estimate applies a benchmark cost of £48 to 160.4 million import and export declarations filed over the four years; HMRC data put costs above £1.8bn in 2022 alone. M&S said it had to rent a warehouse to store paperwork, while meat processors said businesses must still meet EU standards to sell there and now face extra certificates and checks. A proposed agricultural foods deal may reduce some costs, but most sectors would continue to bear the administrative burden.
In short
- Brexit-related customs paperwork is estimated to have cost businesses at least £7.7bn.
- The figure covers 160.4 million declarations from 2022 to 2025.
- A proposed EU food deal would address only some sectors.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The paperwork estimate points to a real added cost of trading with the EU: businesses must complete many more declarations and, in some sectors, obtain certificates and undergo checks. Supporters of this case argue that those costs make exports less competitive, especially for smaller firms, and that reducing them through closer arrangements with the EU could support trade and growth.
The case against
Customs paperwork is one cost among many, and the £7.7bn figure is an estimate based on applying a benchmark cost to the number of declarations, rather than a direct measure of Brexit’s total economic impact. Advocates of the UK’s greater regulatory autonomy may argue that border procedures are a consequence of choosing a separate trading relationship, while the UK can still pursue its own policies and negotiate targeted agreements to ease burdens in particular sectors.