A new survey from the Confederation of British Industry (CBI) has revealed that over 40 per cent of UK businesses believe that Brexit has wounded their investment plans.
The Confederation’s latest Investment Survey clearly asked 357 companies in the UK how the decision to leave the EU had affected their plans, with nearly 150 stating that they had reconsidered their intentions to spend as a result.
Of the 42 per cent who said their business had been affected, 98 per cent indicated that the effect had been negative.
However, this means that the remaining majority believe that Brexit will either have no effect (58 per cent) or a positive impact (2 per cent).
Rain Newton-Smith, the CBI’s chief economist, said: “Across the UK, there are many examples of businesses and sectors thriving and providing jobs and growth in local communities.
“It is reassuring that the majority of businesses that responded to our survey do not feel that Brexit has changed these vital spending plans.
“But we must have our eyes wide open: an overwhelming number of those that did report an impact said it was negative.”
Martin Williams, Partner at George Hay, commented: “The Government really must do all it can to change the opinions of those businesses who see nothing but a bleak future following Brexit. After all, today’s investments create tomorrow’s jobs and if businesses are too afraid to invest, eventually the economy and the job market will stagnate.
“The Government’s increasingly clear commitment to a single transition stage is obviously very welcome. Firms are making big investment decisions right now, which will have consequences for years to come. They need clarity and continuity to have confidence in these judgements.”
Here at George Hay, with a large proportion of our client base made up of small, local businesses, we understand the issues facing these firms. We are on hand all year round to ensure you’re always up to date on the latest legislation and aware of the tax-saving opportunities available to you. We work across all industry sectors to provide comprehensive audit, accountancy, taxation and business advisory services, tailored to the requirements of your business. If you’d like to find out more about how we can help you contact us on 01462 708810.
Source: CBI Investment Survey