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Brexit 'teething problems' endemic and could ruin us, say UK businesses

Ease of trading is key measure of success, say cross-channel businesses, not lack of lorry traffic
It was billed as a deal that would secure tariff-free access to the EU, that “sunlit uplands” would follow initial disruption to trade.
But one month since the Brexit trade deal came into force, businesses are warning that the “teething problems” Boris Johnson described in a visit to Scotland last week are in fact symptomatic of endemic disruption that will force many businesses to restructure and will mean the end of some British businesses altogether.
“The last month has been like Dante’s fifth circle of hell” for importers and exporters unable to move supplies because of new red tape, said Ben Fletcher, the policy director of Make UK, which represents manufacturers across the UK.
One internationally renowned car manufacturer had “1,000 cars sitting in their car park partially built because they could not get the parts in time,” said Fletcher. “They said this has never happened ever before.”
A survey by Make UK of its members shows that 60% of companies that said there were ready for Brexit “now experience disruption” and are “also finding supply chains significantly impacted.
“There is real anger and incredible frustration for people who either import or export that they are simply not able to move stuff. It is just incredibly difficult to get the paperwork right and there have been very low levels of support from government,” he added.
He was commenting as the Cabinet Office said the flow of cross-channel freight was much better than anticipated with just “2-3%” trucks turned away for not having the paperwork or Covid tests required, and no expectation now that the worst-case scenario it had modelled of 7,000 trucks queuing in Kent would be realised.
But Shane Brennan, the chief executive of Cold Chain Federation, said traffic volumes were still down because of Brexit stockpiling. Warehouses were 85% full, down from 100% before Christmas, but still above the 60% usually seen in January.
He urged the government to “stop using the lack of traffic on Kent roads as a metric of the success of Brexit and realise that the real test is ease of trading”.
French authorities told government officials that “around 50%” of lorries crossing the channel were empty. One logistics company in Europe reports that some of its customers including one large car firm, was paying for trucks to return to the EU without cargo to ensure they were not delayed at the frontier and would therefore have time for a second or third delivery back to the UK each week.
The biggest hit to business is the new rules of origin requirement, which will have a permanent impact on trade. Previously, Brexit goods coming from the EU did not need to be certified as made in Britain or made in the EU to be sold freely within the single market.
But since January the provenance of all goods must be documented. A circuit board from Korea in a gadget assembled in Germany, metal from China in a bicycle made in Italy or textile from Morocco in a shirt made in Portugal could mean the difference between no tariff and a tariff that can range from 6.5% duty on plastics to 1.7% on vacuum cleaners, 12% on coats and 14% on bicycles.
The Food and Drink Federation (FDF) says the issue has been compounded by a lack of notice and sheer lack of experience of customs officials on both sides of the border.
“One port requires every document to be individually stamped. Another wants one stamp on a dozen pages fanned out and is turning people away if they haven’t done it that way,” said Dominic Goudie, its head of international policy.
FDF says some fresh food exporters are facing an existential threat. Cross-channel deliveries that used to take “a couple of days are now taking five days”, killing the shelf life of produce such as British sausage, said Goudie. “They may have to sell frozen sausages in future but the question is: will people want to buy frozen sausages?” said Goudie.
Make UK says even large businesses that spent two years preparing have been scuppered by rules of origin. They complain their EU suppliers were “unprepared” for Brexit and have not been able to supply an audit trail for all goods. Large exporters had some idea of what they were facing come 1 January, but they did not have the detail until the 1,400-page deal was published on 26 January.
One factory in the automotive supply chain told Fletcher it could take it “two months” just to get the rules of origin data from suppliers.
“People are starting to realise how hard it will be to build rules of origin into the existing trading rules. These are teething problems, but they are moving towards a structural problem,” added Fletcher.
The Federation of Small Businesses boss, Mike Cherry, called on the government to issue “direct funding in the form of transition vouchers to aid operational adjustments”, and raised concerns about courier companies that have stopped taking goods from small suppliers that need health certificates.
There are also industry concerns that the scale of the problems have yet to manifest themselves completely because of stockpiling.
“Nobody can be ready for a change of this magnitude. There needs to be a dynamic and continuous conversation on easements and simplifications. The trade deal is like the green base of Lego that you put additional bricks on,” said Adam Marshall, the British Chambers of Commerce (BCC) director general.
The Cabinet Office said Michael Gove had met trade representatives on Thursday and vowed to “pull out all the stops” to help business with weekly meetings of a new Brexit taskforce.
It claimed that “overall businesses have adapted well to the changes” with the latest data showing less than 5% trucks were being turned away from Dover and other ports because of absence of the correct paperwork or of Covid test results.
“We have got to get past Brexit as crisis management. This is our way of trading for the next 50 years. It’s permanent. This is Brexit,” said Brennan.
The BCC has called on the UK and EU leaders to resume talks to help businesses on both sides of the channel struggling with the biggest disruption to trade since the single market was formed in 1993.
source: Lisa O'Carroll
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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