10 years after Brexit: what has changed for UK businesses?

Ten years after the Brexit referendum, its impact on British businesses is still being felt. Since the UK left the EU single market and customs union at the end of 2020, companies have had to adjust to new trading conditions, additional administrative requirements and changing investment prospects.

For smaller businesses, the challenges remain particularly tangible. According to research published in June 2026, one in five UK small businesses still sees Brexit as a barrier to growth.

A decade on, what has Brexit meant for British companies, how have they adapted, and where do opportunities for growth in Europe stand today?

10 years after Brexit key takeaways

Ten years after the Brexit referendum, UK businesses continue to face additional trading costs, regulatory complexity and pressure on investment.
The EU remains a major export market for British companies, including SMEs, despite post-Brexit barriers.
UK companies can adapt through better export planning, European distribution partnerships or a local presence in the EU.

Ten years after Brexit: the economic impact on UK Businesses and SME’s

Ten years after the Brexit referendum, research points to weaker business investment and more complex trading conditions for UK companies. While the impact varies across sectors and business sizes, SMEs can face particular difficulties absorbing additional costs and administrative requirements. UK businesses have faced a prolonged period of uncertainty, weaker investment and new barriers to European trade. Yet measuring Brexit’s precise impact remains difficult, particularly against the backdrop of the Covid-19 pandemic, rising energy prices and wider global economic pressures.

A decade of slower investment and growth after Brexit

The long-term impact is increasingly visible in economic research. According to a 2026 analysis by the Institute for Government, UK business investment has fallen more than 10% below where some estimates suggest it might have been without Brexit.

This matters for companies planning to expand, recruit or invest in new facilities. Lower investment can gradually weaken productivity and competitiveness, even when its effects are less immediately apparent than a rise in operating costs.

The British economy has continued to grow since 2016, but the question is how much stronger that growth might have been under different trading conditions.

Why SME’s and smaller businesses continue to feel the effects of Brexit

The impact has been particularly difficult for some small and medium-sized enterprises (SMEs). Unlike larger groups, they often have fewer financial and administrative resources to absorb additional costs, manage regulatory changes or reorganise international operations.

Research published by Novuna Business Finance in June 2026 found that 20% of small businesses reporting barriers to growth still identified Brexit as one of them. The figure has remained at or above that level for five consecutive years.

The findings illustrate a lasting challenge for part of the UK business community. For companies with ambitions beyond the domestic market, decisions about investment, recruitment and international expansion increasingly depend on their ability to manage costs and navigate changing trading conditions.

🔎Read the dedicated LSE report recap on how Brexit has affected British SME’s

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How has Brexit reshaped trade between the EU and the UK?

Brexit has changed the way British companies trade with the European Union. Since January 2021, businesses have had to navigate customs procedures, regulatory requirements and additional paperwork that did not apply when the UK was part of the single market.

The difficulties remain significant. According to a December 2025 survey by the British Chambers of Commerce, 54% of UK exporters surveyed believe the UK-EU trade agreement is not helping them grow sales.

Higher costs, customs procedures and regulatory complexity after Brexit

Under the UK-EU Trade and Cooperation Agreement, goods can still move between the two markets without tariffs, provided they meet the applicable rules of origin. However, tariff-free trade does not mean frictionless trade.

🔎Understand rules of origins to trade in the EU

As explained by HM Revenue & Customs, businesses claiming preferential tariffs must demonstrate that their goods meet the relevant origin requirements. Customs declarations, VAT obligations and product compliance rules add further complexity to cross-border operations.

🔎Find out your VAT obligations to trade in the EU

For smaller exporters, these requirements can put considerable pressure on resources and profit margins. The latest British Chambers of Commerce Trade Confidence Outlook illustrates the wider difficulties: in the first quarter of 2026, only 23% of SME exporters reported increased export orders, compared with 38% of larger businesses. These figures reflect overall export performance, rather than EU trade alone.

Different challenges for goods and services since Brexit

The impact extends beyond physical products. British service providers also face restrictions on business mobility, professional qualifications and access to certain regulated activities.

🔎Learn more about moving your employees to France after Brexit

A 2025 House of Commons Library briefing confirms that the trade agreement allows temporary business travel under specific conditions, which vary according to the activity and type of business visitor.

For a British consultancy serving clients in France, for example, delivering a project may involve checking local requirements before sending employees across the Channel.

These changes have encouraged companies to reconsider how they operate in Europe. While direct exporting remains appropriate for many businesses, others have explored European distribution partnerships, local stockholding or a permanent presence in the EU to maintain closer relationships with customers.

Despite Brexit, Europe remains a priority for British businesses and SME’s

Despite the additional barriers created by Brexit, Europe remains a major market for British businesses. Geographic proximity, established commercial relationships and access to a large customer base continue to make the EU an important destination for UK exporters and companies looking to expand internationally.

The EU remains a major market for UK companies

According to the UK government’s trade statistics, 41.3% of British exports of goods and services went to the EU in 2025, representing £384.4 billion. The proportion has changed relatively little since 2015, when it stood at 42.3%.

The figures highlight the enduring importance of European customers for British companies, despite changes to trading conditions. For businesses with established supply chains, distribution networks or long-standing client relationships across the Channel, maintaining access to this market remains a commercial priority.

British companies and SME’s are continuing to expand into the European Union and France

A June 2026 study by Howden and Beauhurst reinforces this picture. It identified 84,800 overseas operations of British businesses in Europe, with SMEs accounting for more than four in five of these operations. France is a particularly relevant example. The research recorded approximately 19,700 UK business operations in France in May 2026, an increase of 29.6% compared with 2016.

At the same time, British companies are diversifying their international presence. Younger businesses are increasingly establishing operations in Asian markets, reflecting ambitions that extend beyond traditional European destinations.

Yet these developments have not displaced Europe from its central position in British international expansion. The challenge for companies, particularly SMEs, is to balance their growth ambitions with the practical requirements of operating across different markets.

What are the options for UK companies and SME’s looking to grow in Europe?

Ten years after the Brexit referendum, British companies still have several routes to European growth. The right approach depends on their sector, customer base and resources. For some, adapting existing export operations may be sufficient. Others may benefit from developing partnerships or establishing a local presence.

Rethinking distribution and supply chains

For businesses shipping goods to European customers, logistics can make a significant difference to competitiveness. Reviewing transport arrangements, working with customs specialists or holding stock within the EU can help companies manage deliveries more effectively.

These decisions also have tax and regulatory implications. The UK government’s export guidance highlights the importance of checking customs procedures, documentation and responsibilities before shipping goods overseas.

🔎Discover how to trade like Brexit never happened with the help of a customs agent

Building commercial partnerships in the EU

Working with a European distributor, commercial agent or local partner offers another route to market. Such arrangements can help companies develop customer relationships and gain local market knowledge without immediately investing in their own premises.

For SMEs in particular, commercial partnerships can provide a gradual approach to international expansion, although contractual arrangements, responsibilities and partner selection require careful consideration.

Establishing a local presence to support long-term growth

For companies with sustained European demand, setting up a subsidiary, office or operational facility may become a strategic option.

A local presence can bring businesses closer to their customers, support recruitment and facilitate distribution across European markets. However, it also involves decisions concerning legal structures, taxation and operating costs.

The choice between exporting, partnering and establishing locally depends on each company’s ambitions and business model. Access to reliable local expertise can help decision-makers assess these options before committing resources.

The UK Business Centre Lille: helping British companies access European opportunities

For British companies looking to strengthen their European presence, finding the right local contacts can be as important as choosing the right market-entry strategy. This is where the UK Business Centre Lille comes in.

Created to address the practical challenges of post-Brexit trade, the initiative connects British businesses, from SMEs to larger groups, with English-speaking experts and a network of public and private partners in France. Supported by the UK Department for Business and Trade, it helps companies identify the expertise they need to develop their activities in the EU.

Local expertise and a network of trusted partners

From customs representation and VAT to logistics, commercial partnerships, legal matters and recruitment, the UKBC Lille network gives companies access to specialists familiar with cross-border business.

Based in Hauts-de-France, close to the UK, Paris and Brussels, the Centre also offers a practical point of entry for businesses considering distribution, commercial representation or a physical presence in France.

Whether a company is exploring its first European customers or reviewing an established export strategy, the team helps clarify its needs and connect it with relevant contacts.

🔎Discover our support and how we help British companies

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