Small businesses 'frozen out of EU markets'

05 May 2026

Research carried out by the Federation of Small Businesses (FSB) has shown that small firms in the UK are being pushed out of EU markets by red tape and rising costs.

34% of SME traders in the UK expect to cease trading with the EU altogether if rules surrounding red tape don't change.

Only 6% of UK businesses see an opportunity to grow trade with the EU under existing rules. An additional 34% of firms are facing rising compliance costs of more than £5,000 a year.

The business group has called for urgent action to make trading with the EU easier and more attractive.

'With growth at the top of the agenda, now is the time to get EU trade working for small firms,' said Tina McKenzie, Policy Chair of the FSB.

'Small firms are not short of ambition but they're being worn down by a system that feels stacked against them. Many want to grow into EU markets, but don't have time to be swallowed by paperwork, creeping costs and delays that put hard-won customer relationships at risk.

'The EU should be a natural market for our small firms as it's so close and accessible. When it works, it opens doors, drives growth and helps businesses thrive.'