Calderdale companies face challenges in event of no deal Brexit

Business chiefs Martin Hathaway, Managing Director of Mid-Yorkshire Chamber of Commerce, and Paul Walters, a Calderdale business owner and the lead for the Federation of Small Businesses in Yorkshire and Humberside, were invited to speak about the impact of leaving the European Union to members of Calderdale Council’s Place Scrutiny Board.

The United Kingdom left the European Union in February and the transition period ends on December 31, with discussions an a trade agreement still ongoing.

During the debate, Mr Hathaway said if he was asked to take a punt that “we think it is more likely there won’t be a deal than there will be a deal.”

Mr Hathaway said his remit took in Calderdale, Kirklees, Wakefield and their districts, and Calderdale was a big exporter, punching above its weight.

Around half of his area’s exports went to the rest of the world and half to the EU, he said.

Those companies which exported to the rest of the world were familiar with tariffs and certificates needed to export, which would be the position if no deal was reached, but those exporting solely to the EU might not be.

Large companies were ready and mid-sized ones fairly prepared, said Mr Hathaway, but there were doubts.

“I still think that most are burying their heads waiting for clarity before they continue exporting,” he said.

There were also positives with the withdrawal, one being that companies who had not previously thought of exporting to other parts of the world were looking to increase exports, although this would come with an administrative burden, said Mr Hathwaway.

Coun Josh Fenton-Glynn (Lab, Calder) asked what would happen if there had to be a customs border within the UK in terms of how much trade Calderdale businesses did with Northern Ireland and the impact export and import tariffs might have on farmers who exported animals or imported a lot of feed from the EU.

Mr Hathaway said in Calderdale it was mainly goods coming from Northern Ireland. It was a huge concern for colleagues over there.

Mr Walters in relation to the former said: “What’s for sure is there will be paperwork to do. It won’t be called a customs entry but the worry is it will be a customs entry by another name.

“This is a great concern and this is an area where we need a trade deal, it would make it very much simpler.”

Coun Fenton-Glynn commented: “It’s a good job this was all done to reduce red tape, eh?”

On the issue of impact on farmers, tariffs to export beef and lamb to the EU are in the 40 to 50 per cent range if no deal is reached, he said.

In Wales, where 70 per cent of lamb exports went to the EU, it had the potential to decimate the industry, said Mr Walters.

Mr Walters said HMRC dealt with 50 million customs entries a year and from January 1 this would go up to 255 million hence six months’ grace the Government had put in place for imports because the system “frankly, won’t cope” if they came in straight away.

“The message we want to get across to business is ‘be prepared’ – this has to be the motto for the end of the transition period,” he said.

Even those businesses which did not export or import themselves needed to be aware suppliers might do and the changes could affect them.

Coun Peter Caffrey (Con, Northowram and Shelf) said businesses had the relevant information available and found it difficult to understand why businesses should have a problem. Mr Hathaway said the problem was some were preparing too late.