Many small British exporters no longer sell items to the European Union due to the red tape caused by Brexit. According to a survey published on Monday by the British Federation of Small Businesses, one in four entrepreneurs are no longer doing business with EU countries either temporarily or at all.

The survey of 1500 companies shows that 23% of exporters have temporarily stopped selling to EU customers. A further 4% have decided to permanently stop sales to the block, after the new trade rules came into force at the beginning of this year.

The results of the FSB poll make it even more clear that the UK’s exit from the EU is doing even more damage to the economy, which is already suffering from the coronavirus crisis. For example, trade has been limited and costs have increased. Official figures show that exports and imports fell sharply after the United Kingdom withdrew from the Single European market on 31 December.

“Three months after the end of the transitional period, permanent and systematic problems threaten. We hoped it would be teething troubles,” said Mike Cherry, president of the FSB. “While the larger companies have the resources to overcome the problems, the smaller traders are struggling and wonder if exporting is still worth it.”

The vast majority of those doing business with Europe have been affected by shipping delays or see the flow of goods as a whole being lost. Many companies are considering setting up in an EU country to facilitate their export process.