Inaugural Business Momentum Tracker Survey finds over a third of UK businesses lack the legal support needed to trade with the EU
- A third of companies haven’t been given adequate tools to help them trade in the European Union, according to results from a Business Momentum Tracker Survey commissioned by LawBite; an online legal platform which provides expert services to SMEs.
- The survey of 1000 businesses across the UK from retail to manufacturing also found half of companies across the UK believe their business prosperity will standstill in 2021; while over one in ten say it will diminish.
- LawBite is now calling on the Government to launch a Help to Trade scheme, which would provide companies with access to legal services and other advice to help buy and sell in the EU.
LONDON – LawBite, the digital legal platform providing expert, accessible services to SMEs, is calling on the Government to launch a ‘Help to Trade’ scheme to build on the Help to Grow scheme recently announced to improve the digital skills of small businesses. The scheme would facilitate access to Britain’s world class legal services in order to address disruption in SME supply chains and boost trade with the European Union. It comes as the fast growing challenger law platform releases its Business Momentum Tracker Survey, which provides quarterly insight into how businesses are coping with the implications of the government’s trade agreement and its impact on the ambitions of ‘Global Britain’.
Since the transition period came to an end on January 1, millions of SMEs have encountered increased costs due to extra border checks and paperwork. The Business Momentum Tracker Survey has revealed that over a third (35%) of businesses still lack the legal support needed to address these issues and facilitate trade with European countries, particularly those in Energy, Utilities, Oil and Gas (50%), as well as the Shipping and Distribution industry (57%). Unsurprisingly, sectors hit harder by the pandemic were less concerned by the new trading regime as they continue to grapple with government enforced lockdowns, with 32% of Retail, 43% of Aviation and 44% of Bio-Tech less concerned by Brexit and finding the transition easier.
More worryingly for the UK economy, as it seeks to bounce back from a third national lockdown, the survey found that half of businesses (50%) expect prosperity to standstill in 2021, while over one in ten (12%) believe it will diminish as a result of the current trading environment. The survey also revealed how almost half (42%) of firms believe Brexit has negatively impacted the ease of importing products from the EU, followed by price changes within supply chains (39%), as well as the ease of exporting products to EU customers (38%). Lastly, in what will frustrate advocates in government for a ‘Global Britain’, almost two fifths of companies (38%) claim it has negatively impacted their plans to increase trade abroad.
Clive Rich, LawBite founder and CEO said, “The results of this survey demonstrate why the government must urgently look at how they can improve access to legal support for SMEs. These business have historically been excluded from an overpriced and inaccessible legal services sector, and now more than ever it’s time for change. The government recently launched a ‘Help to Grow’ scheme, which provides subsidised digital training courses to small businesses. A similar scheme must now be launched to provide legal support to thousands of SMEs hit hardest by the new trading regime with the EU. Without an equivalent scheme for Brexit, the Government’s ambitions for a quick economic recovery and thriving ‘Global Britain’ could amount to little”.
For the full set of figures click here
LawBite is a leading online legal platform, providing expert but accessible legal services to those SME businesses let down by Britain’s overpriced and exclusionary legal system. A new law-tech disruptor, LawBite is shaking up a £20bn a year domestic industry in need of a technological and democratic revolution.
LawBite CEO Clive Rich, a qualified barrister, founded the company after witnessing larger law firms actively discourage staff from taking on smaller clients. Since its founding, LawBite has provided a much-needed voice to tens of thousands of the UK’s 6 million SMEs, who spend around £9bn on legal services every year. The business has performed strongly over the past twelve months, onboarding new technology and forging partnerships with leading brands to reach large SME audiences.
About the Business Momentum Tracker
Employment Sector: Agriculture/Fishing, Automotive, Aviation, Banking/Financial, Bio-Tech, Chemicals/Plastics/Rubber, Consumer Packaged Goods, Consumer Electronics, Consulting, Construction, Legal/Law, Manufacturing, Transportation, Shipping/Distribution, Retail/Wholesale trade, Pharmaceuticals, Information Technology/IT, Healthcare, Fashion/Apparel, Energy/Utilities/Oil and Gas, Professional Experience: C-Level (e.g. CEO, CFO), Owner, Partner, President, Vice President (EVP, SVP, AVP, VP), Director (Group Director, Sr. Director, Director), Manager (Group Manager, Sr. Manager, Manager, Program Manager)
Survey Running Date:
23 February 2021- 25 February 2021