The latest UK trade figures released by the Office for National Statistics (ONS), covering December 2025, show that the value of goods exports fell by £1.0 billion (3.2%) in that month, with reductions in exports to both EU and non-EU countries.
Sales to the EU fell by 3.1%, led by a decline in exports of fuels, machinery and transport equipment. Exports to the rest of the world fell 0.4%, with declines in sales of machinery, transport equipment and chemicals.
The latest trade report also shows that the trade in goods deficit had reached £58 billion in the fourth quarter (Q4) of 2025, while the trade in services surplus is estimated to have widened by £1.4 billion to £54.3 billion.
Reacting to this latest data, the British Chambers of Commerce (BCC) referred to the UK as having a two-tier export economy. The BCC’s Head of Trade Policy, William Bain, noted that the gap appears to be widening as services now make up 58% of all UK overseas sales, with expansion in travel, business advisory services, computing and insurance, alongside traditional strengths such as legal and financial services.
“This has been helped by improved market access through new trade agreements, such as with South Korea,” he pointed out. “That provides some optimism for 2026, although more progress is critical in key markets including the EU, US and Indo-Pacific region.”
The BCC is urging the Government to focus on lowering tariffs and non-tariff trade barriers as well as on stronger trade promotion and better support to access new markets.
