The news this week that the UK government has agreed a framework for a deeper economic relationship with the EU will likely be a positive step forward for British business. After months of gloomy headlines, this deal, together with those recently agreed with the US and India, provides an opportunity for UK businesses to get back on the front foot, both at home and on the global stage.
The EU deal is projected to provide a £9bn a year boost to the UK economy, offering business benefits from easier access to European markets to administrative cost savings.
Over recent years, some British businesses have lost ground to competitors as exports to the EU became too costly to be competitive, with some ceasing European exports altogether. The playing field might be more level again, but to truly get back in the game, UK exporters will have to compete on service, not just price.
Going forward, we all have a role to play in seizing this moment and promoting the Service Nation aspect of ‘Brand Britain’.
Cross-sector benefits
One of the most talked-about parts of the deal is the veterinary agreement, which could lead to a 20% increase in food and drink exports, with potential benefits beyond the agrifood sector. Overall, the deal should help dampen food inflation (which has so far been sticky), potentially enabling a faster fall in inflation and interest rates overall.
The re-integration of UK and EU energy markets offers further support on this front, which analysts suggest may, over the long term, save UK consumers – including businesses – up to €44bn a year in energy costs.
The travel sector will also welcome the confirmation that e-gates will be available for UK passengers in the future. While not directly within their control, removing this point of friction will likely improve passengers’ overall perceptions of the travel experience with their brand.
An opportunity for service to shine
UK businesses can harness the momentum this deal should create. Beyond the sectors directly benefiting from increased market access, the improved mood music provides an opening to showcase the best of our service economy.
Relationships will need to be rebuilt and there is no better way of doing this than going the extra mile on customer service.
In short, UK business has some genuinely positive news to celebrate after what we know has been a challenging period. And as the world’s second-largest exporter of services, now is the time to lean in, seize this moment and put service at the heart of a new chapter for Britain both at home and on the international stage.
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