logo
UK cheesemaker welcomes new EU deal – but says it comes four years too late

UK cheesemaker welcomes new EU deal – but says it comes four years too late

The Guardian20-05-2025

A British cheese maker who was forced to sell his business because of a £600,000 loss caused by Brexit red tape has welcomed the new deal with Brussels – but says it comes four years too late.
Simon Spurrell, who made headlines when he highlighted prohibitive export costs after the UK's exit from the single market, said he was delighted the 'grownups are back in the room' and he will now consider relaunching his business as long as the details are confirmed.
'It is good news but we could have had this from day one. It is just such a shame it has taken so long, we could have had this in 2020,' he said.
His company's business model was upended overnight under the hard Brexit deal sealed by Boris Johnson with 20% of sales revenue disappearing immediately.
The former prime minister decided to reject the EU's offer of a Swiss deal obviating the need for veterinary certification on food including red meat, poultry and shellfish because it would have meant the UK aligning itself with EU rules.
A version of the Swiss deal, with most sanitary and phytosanitary checks eliminated, is now back on the table, with hopes it can be concluded within a year.
Brexit meant Spurrell faced charges of £180 per veterinary certification on retail orders on the continent, even for cheese packs worth just £35.
Initially Spurrell, who had committed to a £1m expansion for his growing Cheshire Cheese Company, tried to get around the new trade barriers considering warehousing cheese on the continent.
But the costs were prohibitive and he sold to a larger business who had a distribution centre in the Netherlands and a legal entity to export to in Germany.
'They were exporting to themselves but it still meant the UK was losing out. They have to pay 5% of corporate tax and 20% VAT to the Germans and the transport costs have to be paid to the Dutch, so margins are tight. This deal potentially does away with that but we have to wait to see if it includes no checks for orders from individual customers,' he said.
Even if not, this is huge news for small and medium-sized businesses, he said.
'Our biggest consumer market, 27 neighbouring countries that we lost, is open again. It is the small producers that lost out from Brexit. The biggest companies and supermarket chains were able to shoulder the costs.
'Now we can stop fishing in this small pond and cast our net wider again. Everybody has been waiting for this to happen. Just thank heavens the grownups are back in the room instead of people trying to make the EU to be the bad guys when it is the British government who cut us out of the market in the first place and rejected the original SPS deal.'
He added: 'All the Tories were interested in was soundbites and sabre-rattling, not British business.'
In 2021, the first year of Brexit trading operations, Spurrell lost £240,000 in wholesale and consumer business in Europe and was looking at another hold of £350,000 the following year before deciding to sell up.
He said the alliance with Joseph Heler, a much larger concern, offered strategic means of dealing with costly Brexit trade barriers.
'If you are large enough you can mitigate the increased costs because the cost of the paperwork for one pallet of cheese can be spread across 100 pallets. It will also benefit all the customers in the EU because they can get a local delivery rate,' he added.
Spurrell said the deal, which was undertaken for an undisclosed sum, was also great news for his workforce. All head office, production and warehouse staff will be retained while 14 additional full and part-time jobs will be created.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

GUINNESS EUROPEAN EQUITY INCOME: Forgotten fund turning gems into £100m moneymaker
GUINNESS EUROPEAN EQUITY INCOME: Forgotten fund turning gems into £100m moneymaker

Daily Mail​

time6 hours ago

  • Daily Mail​

GUINNESS EUROPEAN EQUITY INCOME: Forgotten fund turning gems into £100m moneymaker

After more than 11 years, Guinness European Equity Income is emerging from the shadows. Having been left to lie fallow as a result of the success of its sister fund Guinness Global Equity Income, it is beginning to gain some traction with investors and wealth managers. The fund, valued at a meagre £8 million a year ago, has now broken through £50 million. And co-fund manager Will James is confident it won't be long before it gets to £100million – maybe by the end of this year, but more likely within the next 12 months. To put these numbers into perspective, Global Equity Income, launched three years before European Equity Income, now has £4.9 billion of assets under its wing. 'The fund has momentum,' insists James. 'It's six times bigger than it was a year ago and it's in growth mode. It's rather encouraging.' James, who joined Nicholas Edwards on the fund in early 2024, believes one of the key drivers has been an improvement in the wider investment case for Europe. He says: 'As an investment proposition, Europe struggled to compete with US exceptionalism for many years. The result was that most investors' portfolios were underweight in Europe. 'But that US exceptionalism has now unwound, resulting in the appeal of dividend-friendly European companies being brought to a wider investor audience.' The fund's focus is on identifying European companies that are undervalued but which have strong balance sheets and cash flows largely impervious to the state of the economic backdrop. It side-steps businesses which have lots of debt. All these demands reduce an investible universe from 1,400 down to 200. Like other Guinness funds, European Equity Income then builds its portfolio around just 30 stocks, with holdings having broadly equal weightings. If a new company is brought into the fund, one has to be pushed out. The fund's exposure is determined by the companies it buys, not a view on the relative attractiveness of individual markets. This year, stakes in two businesses have been sold: Swiss-Swedish electrical engineering giant ABB and Finnish IT software company Tietoevry. They were replaced by energy technical specialist SPIE and Dutch-based BE Semiconductor Industries. James says: 'SPIE is generating an attractive dividend, and its work is essential in improving Europe's electrical infrastructure. 'BE Semiconductor Industries is a specialist in hybrid bonding, a process which enables semiconductors to be built that are more powerful and efficient than ever before.' Fund changes are infrequent – two holdings were sold last year, three the year before. Eight stocks have been in the fund from the word go, including Finnish industrial company Konecranes, Norwegian fish farm specialist Salmar, London-listed Unilever and French consumer staples business Danone. The fund's performance numbers stack up. Over the past one, three and five years it has outperformed the average for its peer group. Over five years, returns of 71 per cent compare with 56 per cent for the average European fund. Income is paid twice yearly and it has been in growth mode since 2020. An annual dividend last year of £6.21 a share compares with £3.13 in 2020. Later this month James and Edwards will meet financial experts in Bournemouth, Bristol and Leicester – all part of a mission to get the fund to £100 million. Annual fund charges are reasonable at 0.89 per cent and the annual dividend is around 3.6 per cent.

Britain is ALREADY at war with Russia and ‘we are in pretty big trouble' admits defence expert in bombshell warning
Britain is ALREADY at war with Russia and ‘we are in pretty big trouble' admits defence expert in bombshell warning

Scottish Sun

time7 hours ago

  • Scottish Sun

Britain is ALREADY at war with Russia and ‘we are in pretty big trouble' admits defence expert in bombshell warning

Moscow has been 'menacing the UK in various different ways' for years GONE TO WAR Britain is ALREADY at war with Russia and 'we are in pretty big trouble' admits defence expert in bombshell warning RUSSIA is already at war with Britain, an author of the Government's defence review has warned. Fiona Hill, who was the White House's chief Russia adviser during Donald Trump's first term, delivered the stark warning of the threat posed by Vladimir Putin. 4 An author of the Government's defence review has warned that Britain is already at war with Russia Credit: EPA 4 Kharkiv, in Eastern Ukraine, was blitz by Russian missiles in retaliation for last week's Spider Web attack Credit: East2West 4 Fiona Hill, an author of the Government's defence review Credit: Getty She said: 'We are in pretty big trouble. "Russia has hardened as an adversary in ways that we probably hadn't anticipated.' Ms Hill said Moscow has been 'menacing the UK in various different ways' for years, including ­poisonings and assassinations on British soil, ­carrying out cyber attacks and cutting sea cables. In her grim alert, the Kremlin expert said: 'Russia is at war with us.' read more on russia WHITE VAN WHAM Army bosses to buy drones that can be fired from VANS after Ukraine op And she warned that Britain can no longer rely on US military might to protect itself from enemy states. Ms Hill co-wrote the Strategic Defence Review, which warned the UK is facing its biggest threats since the Cold War — and set out plans to urgently build more bombs and guns to arm ourselves. Her comments came as Russian missiles blitzed Kharkiv, killing three people and injuring at least 22, including a six-week-old baby and a 14-year-old girl. The eastern Ukrainian city was struck by 48 drones, two missiles and five glider bombs as part of a huge, countrywide bombardment by Putin in retaliation for last week's Spider Web attack on his nuclear bombers. PM Sir Keir Starmer used an article in last week's Sun on Sunday to deliver his starkest warning yet of the danger of war. Putting the nation on a war footing, he said Britain must prepare to 'sight and win' against our enemies. New footage of Op Spiderweb shows drone blitzing Putin's burning aircraft

Grooming gangs national inquiry demands grow as Tories force vote on new probe into ‘disgusting' crimes
Grooming gangs national inquiry demands grow as Tories force vote on new probe into ‘disgusting' crimes

The Sun

time7 hours ago

  • The Sun

Grooming gangs national inquiry demands grow as Tories force vote on new probe into ‘disgusting' crimes

LABOUR MPs will be put under pressure as Tories force a vote on holding a national grooming gangs inquiry. The Conservatives are tabling an amendment to the Crime and Policing Bill which calls for a statutory inquiry into the scandal later this month. 3 3 They say Labour's plan for five local inquiries is inadequate because the scale of abuse was much wider. And they do not have the power to summon witnesses and requisition evidence. It will put Labour MPs in a tricky position as some have gone against the party to call for a national inquiry. And it could trigger a Red Wall rebellion. Shadow Home Secretary Chris Philp said: 'We now know that these disgusting crimes were deliberately covered up by the police and local authorities simply because the majority of the perpetrators were of Pakistani heritage. 3 "The young girls - some as young as 12 - had their lives ruined. 'The cover-up has to end and those who hid these crimes held to account. 'It is disgraceful that not a single person has been punished for the cover-up. 'Every decent Labour MP who cares about this should vote for our amendment in Parliament.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store