The UK has a new Prime Minister and governing administration – the Labour Party – which might have a renewed approach to EU relations.
Historically, the previous party in power was avidly anti-EU, whereas Labour has (for the most part) been pro-European unity.
As such, it’s possible that we see relationships restored and a stronger reliance on EU trade in the UK.
In fact, recent statements from Prime Minister Sir Keir Starmer and Business Secretary Jonathan Reynolds highlight their intention to strengthen trade ties with the EU.
Reynolds, during his first international visit as Business Secretary, emphasised the desire for a “closer, more mature, more level-headed relationship” with the EU.
This approach aims to tackle issues that have hampered UK-EU trade since Brexit, such as border checks and increased consumer costs.
The Brexit deal allows for a review every five years, with the next opportunity being in 2026 so get ready for changes after the next two years.
Although details on these reviews are limited, they present a chance to address specific trade issues.
Businesses should prepare to voice their needs and concerns to positively influence these reviews.
The key elements of Labour’s trade strategy include:
- Enabling smoother trade in agricultural and food products
- Easing the movement of artists and cultural exchanges
- Allowing professionals to work across borders more easily
British companies might want to now explore new opportunities and strategies for conducting business with the EU.
Building positive relationships
UK companies should seize the positive momentum created by Labour’s proactive engagement with EU counterparts.
This political goodwill offers you the chance to establish or expand your presence in EU markets.
Some positive actions for your business might include participating in industry consultations and discussions to ensure your interests are represented or strengthening relationships with EU partners to leverage improved diplomatic relations.
In his G7 address, Reynolds highlighted the importance of enhancing supply chain resilience.
This is vital for businesses seeking operational stability and risk reduction.
Strategies for supply chain resilience include:
- Diversifying suppliers: Reduce dependency on a single source by identifying alternative suppliers within the EU.
- Investing in technology: Use advanced logistics and supply chain management tools.
- Collaborating with EU partners: Develop joint strategies for supply chain resilience.
The Government’s focus on forging better trading relationships worldwide also opens new avenues for UK businesses.
While the primary emphasis is on the EU, companies should also explore opportunities in other markets rather than becoming bogged down.
Fundamentally, we are recommending that our clients seek detailed and comprehensive tax guidance from a qualified tax adviser.
A tax adviser will be able to point you in the right direction when it comes to developing overseas connections and increasing your ability to capitalise on new EU relationships.
If you’d like help with this, please don’t hesitate to reach out to one of our team – we can help you and your business grow.
