Confusing’ Brexit support fund deters SMEs from applying

Confusing’ Brexit support fund deters SMEs from applying

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A UK government scheme set up to help small businesses handle the disruption and paperwork associated with Brexit has awarded just a third of its total funds amid complaints that its complexity had discouraged companies from applying.

Ministers launched the SME Brexit support fund in February to support small exporters that were struggling to cope with the extra costs from selling their goods outside the EU single market, which Britain left on January 1.  

The government offered up to £2,000 for every business to pay for practical support for importing and exporting, such as dealing with new customs, rules of origin, and VAT rules. An overall pot worth £20m was available to help up to 10,000 small companies.  

But only 4,376 companies have been offered grants of about £6.8m, according to official data, with complaints over its complexity and ease of access for small businesses without specialist trade experience. A total of 5,414 companies applied.

The figures, which were revealed by Labour MP Hilary Benn in a parliamentary question, show that on average businesses who applied only received £1,555 rather than the £2,000