Now that three months have passed since the Brexit vote you might start to believe that normality is returning. However, with Article 50 still yet to be exercised it seems there is much more turmoil to come – especially if a recent survey is to be believed.
Accountancy firm KPMG has reported on the UK’s vote to leave the European Union with a survey of 100 business leaders – and has discovered that 76% are considering some form of relocation.
Overall, the survey found that 69% are confident Britain’s economy will continue to grow and 73% also believe their companies will continue to expand – however, with 72% admitting that they voted to “remain”, the possibility of relocation is now a hot topic.
“CEOs are reacting to the prevailing uncertainty with contingency planning,” KPMG U.K. Chairman Simon Collins said in a statement. “Over half believe the UK’s ability to do business will be disrupted once we Brexit and therefore, for many CEOs, it is important that they plan different scenarios to hedge against future disruption.”
It would appear that Prime Minister Theresa May will have to work hard to retain jobs in the UK as she looks to seal a deal with the European Union that will allow close trading ties with the bloc while still curbing immigration.
According to a Bloomberg
report, the pound has dropped by 13% compared to the US dollar since the fateful vote. However, a formal exit has yet to be triggered.
“Policy makers should be really concerned about a leaching of British business abroad and should engage with business early to understand what assurances they can offer and closely monitor any shifts overseas,” Collins said. “Contingency planning is just that - a form of insurance - but it must not become ‘plan A’. Moving headquarters abroad is radical and hits the headlines but businesses could start shifting operations abroad with little public attention. We hear it time and time again that business needs certainty.”
Lloyd’s boss: We certainly wouldn’t relocate
Canadian insurer EDC sets up shop in London