Hertfordshire businesses are struggling post-Brexit

A Hertfordshire business has seen sales decline after new Brexit regulations cause confusion for EU customers.

The Allendale Group on Pindar Road in Hoddesdon have seen sales of larger items fall by half, following Brexit. Jo Shepherd, Operations Manager, said that adjusting to new shipping requirements has been challenging, and customers have held back larger orders.

The retail company has shipped goods worldwide since they first opened and were already familiar with customs requirements, rarely experiencing issues.

Mrs Shepherd said that “government guidance on exporting to the EU remains unclear” after Brexit, including increased border checks and additional administrative processes. “Customers have been left in the dark about taxes and import duties they will pay,” she said. The company has “struggled to put together guidelines as different couriers and advice guides offer conflicting information”.

Likewise, Mark Saunders, the Director of Allaway Acoustics on Queens Road in Hertford, said that government guidance has been the “opposite of helpful” for the design, engineering, and contracting company. “The new regulations have made it less convenient for export customers to use us, so the danger is they will find local suppliers instead,” he said.

He highlighted increases in delivery costs of up to 20% for lorries, typically with ten thousand pounds worth of goods, noting that shipments to Ireland are amongst the worst. He said that customers are demanding fixed prices, including duty-paid delivery for goods being exported, to avoid handling “confusing” paperwork and costs.

Mr Saunders hopes that “the current situation will improve so that costs come down”, as they have had to cut margins to mask the increase caused by the jump in transport costs. “New regulations have put a major obstacle in the way of our plans to double exports over the next few years,” he said.

“The deal was done at the last minute and the problems have stemmed from the lack of preparation,” said Mr Saunders.

John Woodruffe, Business Support Manager at Hertfordshire Chamber of Commerce, said that businesses have been “hit quite substantially”. “We have seen recurring issues such as with VAT, supply chain issues, data protection, increase in payments, and confusion over forms,” he said.

The organisation has launched a #LetsKeeptheHeartinHertfordshire campaign, to support economic recovery of local businesses after Brexit, and from the toll of the coronavirus pandemic. They have helped with enquiries and have held webinars on topics of concern, including documents/VAT, workforce and immigration, supply chain, and GDPR/IP.

“Gov.uk does provide considerable guidance, as does HMRC. Perhaps what is lacking is places for people to go to for the information they need,” said Mr Woodruffe.

Nevertheless, Dominique Giambrone, the owner of Giambrone’s Italian restaurant on Fore Street in Hertford, feels that “the process has been going on for quite some time and has enabled the business to get prepared as best as possible”.

She has seen an increase in the prices of ingredients imported from Italy and is having to outsource to seek the best possible cost. “We haven’t had to seek government guidance at present however all that we have seen has been quite clear,” she said.

“I don't think the full effects will be noticeable at this present time due to the COVID-19 pandemic. I do however think that given a year or two, people may find things different,” she added.