Here’s a bold statement: Britain’s post-Brexit trade deal is failing its businesses, and the clock is ticking to fix it. But here’s where it gets controversial—while the UK government insists it’s cutting red tape, thousands of firms are struggling to sell to their largest market, the EU. Could closer ties with Brussels be the solution, or is that a political minefield no one wants to step into? Let’s dive in.
Keir Starmer’s administration is facing mounting pressure to rethink its approach to EU trade, as British businesses sound the alarm over the challenges of operating under the current post-Brexit agreement. The British Chambers of Commerce (BCC), representing over 50,000 firms employing 6 million people, has declared that a closer trade deal with the EU is not just beneficial—it’s a strategic necessity. Why? Because more than half of UK exporters (54% to be precise) say the existing Trade and Cooperation Agreement (TCA) isn’t helping them grow sales in the EU. That’s a 13% increase in dissatisfaction from just a year ago, according to a survey of nearly 1,000 businesses, most of which are small and medium-sized enterprises (SMEs).
And this is the part most people miss—it’s not just about trade barriers. It’s about jobs, growth, and the survival of businesses that are already reeling from a tough economic year. Only four out of 946 firms surveyed felt the government’s support on trade policy changes was comprehensive. Steve Lynch, the BCC’s director of international trade, puts it bluntly: ‘Trade is the fastest route to growth, yet firms tell us it’s becoming harder, not easier, to sell into our largest market.’
Labour’s frontbench is starting to take notice. Wes Streeting recently joined the chorus of voices calling for a deeper trading relationship with the EU, even hinting at a potential customs union. But here’s the kicker—this directly contradicts Labour’s manifesto, which promised ‘no return’ to the EU single market, customs union, or freedom of movement. Keir Starmer himself has ruled out rejoining the EU in his lifetime. So, what’s the play here? Is Labour walking a tightrope between pragmatism and political promises?
Pro-European ministers like Streeting, David Lammy, and Liz Kendall are reportedly pushing for bolder moves, but the government’s 2026 priorities include a ‘reset’ of EU relations, not a full U-turn. Last week, Labour announced the UK will rejoin the Erasmus+ student exchange programme in 2027—a small step, but is it enough?
The BCC’s ‘business manifesto for the EU reset’ lays out five key proposals: cutting border checks on animal and plant products, linking UK and EU emissions trading schemes, creating a youth mobility scheme, joining the EU’s defence fund (SAFE), and simplifying VAT and customs processes. These aren’t radical ideas—they’re practical fixes to real problems. Take this quote from a small manufacturer in Greater Manchester: ‘Since Brexit, our export sales have virtually stopped. The TCA has had no impact in recovering any sales into the EU.’ Or this from a Hampshire retailer: ‘Work has stopped coming to the UK due to high taxes and no longer being part of the EU. Companies are shutting down, and thousands are out of work.’
Here’s the controversial question: Is the UK government’s focus on ‘removing red tape’ enough, or does it need to rethink its entire approach to EU relations? A spokesperson insists they’re making ‘strong progress,’ but for many businesses, progress can’t come soon enough. What do you think? Is closer EU trade a necessity, or a political non-starter? Let’s hear your thoughts in the comments.
