New analysis of HM Revenue and Customs (HMRC) figures indicates that United Kingdom businesses spent an estimated £7.7 billion on administrative costs for trade with the European Union over a four-year period. The total, calculated by the Liberal Democrats using official data, covers the costs of import and export customs declarations between 2022 and 2025.
The reporting follows the UK's departure from the EU, which introduced new requirements for documentation on goods crossing the border. Retailer Marks & Spencer reported it had to rent a warehouse specifically to store paperwork, while the British Meat Processors Association stated that exporters must now provide certificates and checks to prove they meet EU standards for their largest market.
According to the analysis, traders filed 160.4 million declarations during the four-year window. Using a benchmark cost of £48 per declaration, the data shows administrative expenses reached £1.8 billion in 2022 alone. Al Pinkerton, the Liberal Democrat Europe spokesperson, stated that these costs divert funds that could otherwise support jobs and innovation.
A government spokesperson stated that the Prime Minister, Andy Burnham, believes Brexit has done more harm than good and has added "paperwork taxes" to business operations. The British Meat Processors Association reported that alternative international markets have not yet replaced the volume of trade lost with the EU since the transition. The loss to the UK’s Gross Domestic Product (GDP)—the total value of goods and services produced—reduces the funds available for public services such as schools, defense, and the National Health Service (NHS), according to the European Movement UK.
The UK government is scheduled to sign a new agricultural foods agreement with the EU later in November 2026. While officials estimate this deal could add up to £9 billion annually to the economy by reducing some barriers, the analysis suggests most economic sectors will continue to face existing declaration requirements. While the Liberal Democrats have called for rejoining the single market and customs union to eliminate these costs, the government has maintained its commitment to its current manifesto, which rules out such a move.