“Deal or no deal – businesses we will need an adjustment period in 2021”

Burdensome customs arrangements, a lack of guidance and cliff-edge immigration rules will damage the UK’s economic recovery next year, say leading tax and advisory firm Blick Rothenberg.

Alex Altmann, a partner and the head of the firms Brexit advisory group said: “The Government must introduce an adjustment period to provide easements for businesses.”

He added: “We are entering the perfect storm in January with various trade hurdles being put in place between the UK and the EU at a time where businesses will need to recover from one of the worst economic crises ever recorded. We call on the Government to show some flexibility for any Brexit outcome to help businesses adjusting to the new reality in 2021.”

Alex said: “We don’t have enough customs agents being able to support EU traders importing goods to the UK. EU businesses without a UK presence will not be able to import their goods from January unless the Government removes the establishment requirement for the time being. We also need clarity on the rules of origin formula the EU is going got apply to imports. With the end of the Customs Union being two weeks away the Government need to show flexibility now.”

Altmann, who is also a Chairman at the British Chamber of Commerce in Germany, added: “Many employers in the construction, hospitality or entertainment industry rely on EU workers. Hundreds of thousands of people have been furloughed or made redundant this year. When these industries recover next year, many employers will not have access to EU workers in the same way anymore. Tight immigration rules will make it very expensive, if not legally impossible to employ them. These cliff-edge rules come too early and strangle our recovery. We need more time.”

Alex said: “Look at German industry in the UK. Germany is the UK’s largest trading partner in Europe, and second largest worldwide, accounting for almost 12% of all UK imports and 10% of exports. Many German businesses have paused their manufacturing processes in the UK, stopped shipping goods across the Channel amid the traffic chaos and have relocated their staff back to Germany for the time being given the uncertainty. The Government needs to provide clarity and certainty so that these big investors continue trading with the UK next year.