Windsor Framework starting to fracture the UK Internal Market, warns FSB

27 Jun 2025

The Windsor Framework is creating severe disruption for small businesses and fracturing the UK Internal Market, warns the Federation of Small Businesses (FSB).

The Framework was negotiated as part of the UK's exit from the EU and is intended to unlock opportunities for Northern Ireland.

However, FSB research found that 58% of those trading between GB and NI report moderate to significant challenges operating across the UK Internal Market. Over a third have already ceased trade rather than deal with new compliance demands.

In addition, strategic confidence is plummeting, with 56% of affected firms not confident in planning for the year ahead, citing uncertainty and red tape.

Alan Lowry, Chair of FSB Northern Ireland, said: 'Small businesses have shown immense resilience, but they cannot be expected to navigate complex new systems alone. The Windsor Framework was meant to offer opportunity – but, for many, it has delivered confusion, constraint and cost.

'This report is a clear call to action. Policymakers must simplify processes, improve communication, and ensure support is accessible. Only then can the Windsor Framework become an enabler of growth rather than a barrier to trade.

'Without immediate action, the Windsor Framework risks becoming a policy defined by missed opportunities, lost trade and disproportionate impacts on the smallest firms. A proactive response, led by the government, and delivered in partnership with industry, is essential to unlocking its full potential and preserving trust in the UK Internal Market.'