£5 billion economy boost on the horizon with UK-EU agrifood deal

Monday’s announcement (9 March), that a deal is expected to be in place by mid-2027, is a significant step to reduce border friction and boost trade that, according to experts, has the potential to boost the UK economy by £5.1 billion every year.

Head of Trade Policy at Logistics UK James Mills explains further: “UK businesses are currently forced to trade with one hand tied behind their backs as they deal with the administrative cost and delays caused by the UK’s decision to leave the EU. Current SPS requirements add cost and complexity to supply chains with certificates and inspections adding hundreds, if not thousands, of pounds to the cost of each load.

“The progress announced on Monday regarding a new SPS agreement with the EU will be welcomed by businesses of all sizes. Fixing the friction at the border and removing unnecessary red tape will give businesses renewed confidence in trading with the EU, and help boost economic growth nationwide, because when the UK trades more easily, it grows.

“It is now essential that negotiations progress as quickly as possible so the new UK-EU SPS agreement can be delivered as expected by mid-2027. We will continue to work with the government to ensure the concerns of our members and the wider industry are heard to ensure a smooth implementation of the new trading regime from day one.”