Small businesses ‘bewildered’ by post-Brexit trade rules, says major review

An independent review into Northern Ireland’s post-Brexit trade arrangements has found that small and medium-sized companies are “often bewildered” by new rules and processes.

The review, led by former Northern Ireland secretary Lord Murphy, also found that “some gaps” remain in how Northern Ireland can “meaningfully influence” EU laws that apply to it.

Lord Murphy also said the recent sanitary and phytosanitary (SPS) agreement between the UK and EU was “a significant advancement” and promised “practical improvements” to NI-GB trade.

DUP leader Gavin Robinson said the report “failed to deliver serious or lasting solutions”, while First Minister Michelle O’Neill said the Windsor Framework was the “outworking of the post-Brexit reality”.

The Windsor Framework, which was agreed in 2023, requires checks and customs paperwork on goods moving from Great Britain into Northern Ireland.

Under the arrangements, which were designed to ensure no hardening of the Irish land border post-Brexit, Northern Ireland continues to follow many EU trade and customs rules.

As a result, unionists have argued the system threatens Northern Ireland’s place in the United Kingdom.

A Stormont vote was held in December on parts of the framework which underpin the EU trade laws, and passed on a straight majority. As it was a straight majority, the UK Government instigated an independent review of the arrangements.

In his review published on Thursday, Lord Murphy said that while businesses “generally agree” the framework is better than a no-deal Brexit, there is “no doubt” that businesses had taken on “a considerable number of extra burdens”.

He said that larger companies were able to absorb new costs and manufacturers were able to avail of dual-market access to their “immense benefit”.

“Major problems however, are faced by small and medium sized companies which collectively, represent the bulk of Northern Ireland business,” he said.

“These companies find themselves often bewildered by the processes, and experience difficulties in obtaining effective and straightforward advice and guidance. They complain that ‘plain English’ is often not used.”

He said that “little is made” of the “unique opportunity” of dual-market access to both the EU and UK.

“It is clear more investment could be attracted as a result,” he said.

Lord Murphy also said “some gaps” remain in how Northern Ireland can “meaningfully influence” EU laws that apply to it.

He said that the Northern Ireland Assembly’s Windsor Framework Democratic Scrutiny Committee should be given 10 working days to decide whether to hold an inquiry into an EU act, rather than the current five days.

“This is often far too little time to make this decision – especially in the case of complicated and far-reaching legislation,” he said.

He also said that while unionist parties raised concerns that checks or restrictions on the movement of goods “weaken” Northern Ireland’s place in the United Kingdom, there is “solid reassurance” on this issue.

“Regarding the concerns over the constitutional position of Northern Ireland, I firmly believe that the principle of consent embodied in the Good Friday Agreement gives solid reassurance on the position of Northern Ireland in the UK.”

His recommendations focused on those that could retain cross-community support, he said, adding that the “wide divergence in views inevitably constrains the scope of potential reforms”.

“The post-Brexit arrangements for Northern Ireland have undergone significant changes and permutations since the introduction of the original Protocol in 2021,” the report said.

“But one only needs to consider the number of scrutiny and review bodies that are currently examining the Framework (including the Independent Monitoring Panel, the Horticultural Working Group, the Veterinary Medicines Working Group, this Review, multiple Parliamentary Committees and one in the Northern Ireland Assembly) to see how live post-Brexit issues remain in Northern Ireland.”

Mr Robinson described Lord Murphy’s review was “a total failure” and said it had not been “taken seriously” by the British government.

He said: “Whilst Lord Murphy and his team may have usefully thrown an additional spotlight on a range of the practical challenges facing businesses and consumers as a result of the Windsor Framework, the truth is that this review in totality has failed to deliver serious or lasting solutions.

“The review has not challenged the reality of Northern Ireland being subject to laws made in a foreign jurisdiction.”

He added: “Despite the underwhelming outcome of this review, the Prime Minister and the Secretary of State for Northern Ireland should be under no illusion that we will continue to work to secure the removal of framework arrangements and will campaign with all those across the United Kingdom who are determined to end these internal borders and barriers within our own country.”

Ms O’Neill said: “On the Murphy report, it’s actually been published as we’ve been in the Executive meeting, but I do welcome the fact that it’s looked at everything.

“From my initial quick look at it, there are some recommendations around improving support for local businesses so they understand things better and I welcome all of those improvements.

“But fundamentally for me, all of this Windsor Framework is the outworking of the post-Brexit reality, which was always going to bring challenges.

“But we now need to get on with actually making it all the work, we now need to get on with maximising the benefit from dual market access, we now need to get on with providing the certainty that businesses require.”