Are stronger sales on the horizon for UK firms who sell goods abroad?

That is because a cheaper pound makes it less expensive for people from around the globe to buy goods and services from British firms, making them more competitive.

It also makes the UK an attractive place for international investors, which could fuel increased corporate finance activity.

In recent times, UK exporters have faced a difficult backdrop of additional red tape and customs checks introduced after Brexit. This has seen exports to the EU declining by nearly 14% in 2021 compared with the previous year according to recent European figures. But a weaker pound could now boost international sales channels for UK firms.

However, on the flip side, the weaker pound means that imports, particularly from America, will be more expensive, adding to UK manufacturing and supply chain costs, and wider inflationary pressure in the UK. Businesses may therefore review their supply chains to seek UK suppliers for component parts where possible. The government’s freeports and newly announced freezones also provide a package of incentives for UK manufacturers but these will likely take time to have an impact.

“Let’s not lose sight of the fact that UK businesses and individuals are facing a tremendously difficult and uncertain time, but tapping into exporting opportunities could be at least offer some silver-lining for UK exporters. There remain compliance challenges to exporting and we hope these will be addressed and supported by the government. Our team will continue to assist our clients with advice and support on the VAT and tax aspects of importing and exporting to the EU or overseas”, says Leighton Bower, Managing Partner, Rouse Partners.

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