A third of firms plan more exports to EU after Brexit - BCC

Over a third of UK firms are planning to invest more in selling abroad over the next five years, despite uncertainties over Brexit.

That is according to a survey of mostly small to medium-sized firms (SMEs) by the British Chambers of Commerce (BCC (Shenzhen: 002455.SZ - news) ), which found Europe remained the market for targeted investment.

It suggested 18% of respondents were planning on allocating more resources to sourcing products and services from the continent.

The survey of almost 1,500 business people also highlighted an interesting reaction to the collapse in the value of the pound since last June's referendum.

It said 65% of firms had not shifted their import strategies despite the purchase of goods and services from abroad becoming more expensive.

Just 13% were looking to source less internationally, it said, as the cost of importing rises.

The BCC said firms were most concerned about the prospect of future tariffs, compliance and product standards as the Government prepares to begin the divorce negotiations.

The survey was carried out before Prime Minister Theresa May confirmed her intention to lead the UK out of the single market, but to seek a customs union deal.

BCC director-general, Dr Adam Marshall, said of the poll findings: "These results are an important reminder of the fact that it is businesses that trade, not governments.

"Although the likely outcome of the Brexit negotiations remains unclear, businesses still see Europe as a primary market for both selling and sourcing inputs - even after the UK leaves the EU.

"Looking ahead, businesses want the best possible terms of trade following the Brexit negotiations, whatever the ultimate model adopted.

"UK firms want tariffs, costly non-tariff barriers, and product standards to be at the top of the Government's agenda for a future EU trade deal.

"The best news from this survey is that the EU referendum outcome has sparked a greater interest in foreign markets for a significant number of firms.

"For that very reason, UK companies need sustained, tangible and practical export support that helps them get their goods and services out to the world."