The UK’s “EU reset” has reignited debate around trade, regulation and economic growth, but for many small and medium-sized enterprises (SMEs), the issue is less about politics and more about survival. ACCA has warned the House of Commons Business and Trade Committee that smaller firms remain disproportionately exposed to post-Brexit bureaucracy and compliance risks, often lacking the resources available to multinational corporations.
In its submission to the Committee, ACCA identified four priority areas for improving UK-EU trade relations: mobility and skills recognition, regulatory co-operation, SME support, and digital trade alignment. The organisation called for “stable, predictable and functional trading arrangements” that reduce friction for businesses operating across borders.
For SMEs, the stakes are particularly high. Unlike larger businesses with dedicated customs teams and legal departments, smaller exporters often operate with limited administrative capacity. Many are effectively “one incorrect form” away from shipment delays, financial penalties or even cancelled contracts. Industry groups argue that this compliance burden has become one of the defining challenges of post-Brexit trade.
ACCA’s concerns reflect wider frustration across British business. The British Chambers of Commerce (BCC) recently described closer EU ties as a “strategic necessity” after more than half of exporters surveyed said the current UK-EU Trade and Cooperation Agreement was failing to help them grow sales in Europe.
Trade friction remains a central problem. Customs declarations, rules of origin paperwork, VAT complexity and product certification requirements have increased costs for firms trading with the EU. While larger companies can absorb these additional processes, SMEs frequently struggle with the time, staffing and expertise required to remain compliant.
The Business and Trade Committee itself has acknowledged these pressures. Ahead of the 2025 UK-EU summit, the Committee highlighted overwhelming business support for measures to reduce border bureaucracy and improve regulatory co-operation.
ACCA believes practical reforms could significantly improve conditions for SMEs. One major area is regulatory alignment and mutual recognition of professional qualifications. The organisation argues that simplifying recognition processes would improve labour mobility and reduce administrative burdens for companies operating internationally.
Digital trade and data co-operation also remain crucial. Many SMEs increasingly rely on cross-border digital services, cloud accounting, e-commerce and remote consultancy work. Divergence between UK and EU regulatory systems risks creating further uncertainty, particularly for firms already navigating complex compliance obligations.
Industry experts have repeatedly warned that regulatory divergence could worsen over time. Earlier BCC research found that many SMEs were unprepared for new EU reporting rules, including carbon border adjustment mechanisms and VAT changes. William Bain, Head of Trade Policy at the BCC, warned of an “avalanche” of new regulations affecting exporters.
The issue extends beyond exports alone. Professional services firms, manufacturers, food producers and online retailers have all reported difficulties adapting to evolving trade requirements. Even relatively minor administrative mistakes can disrupt supply chains or delay payments, creating significant cash-flow pressures for smaller businesses.
The House of Lords European Affairs Committee has described the UK-EU reset as “unfinished business”, noting that rebuilding co-operation will likely be a long-term process rather than a single agreement. That uncertainty itself presents challenges for SMEs, which often need stable long-term trading conditions to justify investment and expansion.
Business sentiment increasingly suggests that pragmatic co-operation, rather than ideological debate, is becoming the priority. ACCA’s intervention reflects a broader shift among professional and trade organisations toward advocating targeted measures that reduce friction without reopening the wider Brexit argument.
For SMEs, this pragmatic approach could make a tangible difference. Simplified customs procedures, better digital co-operation, aligned standards and clearer guidance would reduce operational risks and help smaller firms compete more effectively in European markets.
The reality is that SMEs form the backbone of the UK economy, yet they remain the most vulnerable to administrative disruption. Many simply do not have the margins or staffing capacity to manage constant regulatory change. While multinational businesses can spread compliance costs across international operations, smaller firms often face those costs directly.
As the Government continues negotiations around its EU reset strategy, ACCA’s message is clear: reducing trade friction is not just about economic theory or political positioning. For thousands of SMEs, it is about ensuring that routine paperwork errors do not become existential business threats.