Reaction to shock Brexit referendum vote

KEY sectors of the business community across the North West have responded to the poll which will take the UK out of the European Union.

Professional

Carl Williams, North West office head at business advisers Grant Thornton said: “There will considerable uncertainty for some months as a result of this result.

“With exports being such an important part of the North West economy businesses here will want, as a priority, to see some strong leadership from the government on securing new trade deals with Europe and the rest of the world.

“It is important too that the much welcome focus towards rebalancing the economy by bringing forward the Northern Powerhouse agenda is not lost. As business leaders we must drive it forward where we can.”

Grant Thornton has more than 600 staff at its offices in Liverpool and Manchester.

Chris Robertson, partner in charge of PLC activity at Deloitte in Manchester, told TheBusinessDesk: “If we are talking about the markets, investors don’t like uncertainty, and we are now entering a period of exactly that by definition.



“On the one hand, having the vote hanging over us was creating uncertainty in itself.

“But the fact the vote has now happened has created a large measure of uncertainty.



“It’s important for people to remain objective and balanced. Britain has a history stretching back  centuries for being resilient and adaptable.



”There will be opportunities which present themselves. It’s important that we don’t put across the message that we’re all doomed, to coin a Dad’s Army phrase.



“But it wouldn’t be right not to acknowledge that it will be reflected in currency and on the stock markets for quite some time.”

Simon Allport, EY’s North West senior partner, said: “The initial impact of the vote to leave the EU may not be felt straight away as we will still likely be full members during the negotiations.

“There is a risk that we may see investments continuing to be delayed and transaction activity continuing to be put on hold in the face of heightened uncertainty.

“The longer term picture however is another matter. Businesses across the region must use the next few months to assess their position in terms of trade, their people and regulation. Europe is a significant investor in the North West, as our recent UK Attractiveness Survey shows, in particular from Germany and France.”

Simon Brownbill, a partner and director of practice development at accountants and business advisers HURST in Manchester, said: “It’s clearly a seismic result, not least for the economy. In the short-term we expect volatility – and that is evident as the markets take stock of the result.

“With the result to hand we hope the government and its institutions respect the will of the people and come together to make this work for Britain.

“We are expecting an emergency budget to be announced imminently and all eyes will be on the Bank of England today – expect short-term measures to be announced.”

Business

Justin Gibbs, director and founder at Bluewater Plumbers:  “As a small business owner in Greater Manchester, I was firmly part of the Remain camp.





“The support of Europe, the funding opportunities and the growth for small businesses like mine was evident; I hope that today, as we move forward into this new commercial and economic era, we don’t fall foul of the uncertainty that surrounds us.”



Sara Wilde-McKeown, managing director of communications agency Influential, and chair of the tourism group within the Liverpool Enterprise Partnership, said:  “Manchester and Liverpool voted to remain and this outcome will take some processing by civic and business community – it’s the biggest political upheaval in a generation.





“There will be an obvious concern about the political impact on George Osborne in particular and what that might mean for delivery of the Northern Powerhouse vision.



”Many of our clients will be thinking about the immediate ramifications in terms of inward investment and the overall perception of UK Plc.



”There’s no doubt the ripples from this will affect all of us. That said, the county has spoken and we just have to get on with it.



”The one area likely to be less affected is culture and tourism – and the North West will continue to have much to offer.”

Henry Brooks, managing director of TEM Property, based in Cheshire East aid the implications of the result were “more wide ranging and longer term than most people anticipated”.



He said: “In terms of the impact on business and the Northern Powerhouse, it will undoubtedly pose challenges.



“On the positive side, the Government seems to have worked hard at bringing together cross-party support and appreciation of the value of the Northern Powerhouse concept at a political level, although there remains much to be done about helping people and businesses really understand it and feel involved.



“However, the anticipated upheaval of leadership; the vast amount of time needed to negotiate terms with the EU – and also other UK member states – plus the need to redraft legislation and trade agreements and will undoubtedly be a huge distraction that will likely significantly slow growth in the short-term.”



Simon Lay, director at property business Olsson UK: “The macroeconomic impact cannot be underestimated but I’m confident that our ability to deliver work on the continent in Europe will continue. As a start-up with the backing of an ANZ parent company we have the agility to adapt to what will inevitably be a changing commercial framework.

“Our appreciation for global commerce also means I am passionate about transient career opportunities so I hope BREXIT will lead to an overhaul of the UK’s visa processes – inevitably opening up more opportunities for people to come to work in the UK from the US and Asia.”

Organisations

Clive Memmott, chief executive at Greater Manchester Chamber of Commerce, reacted to the UK-wide vote saying: “Whilst a majority of our members will be disappointed with this result, the public has made its views clear.

“It is vital that the Government and the wider electorate accept this result and work together through the coming period of uncertainty.

“The increased work that will be required by government over the next five years or more must not come at the expense of running the country and must not be hindered by inflamed political tensions.





“The nature of the debate and rhetoric throughout the referendum period has been distracting and for the most part unproductive; there must now be a healing process on both sides as we look to move forward and determine what the future holds.





“The focus in the first instance must be to limit uncertainty and instability, and send clear messages as to the path ahead.

“Government has a clear mandate for change from voters, but should take as much time as needed to deliver these changes with minimum detriment to the economy, businesses and the livelihoods of the public.”



John Hall, chief executive of Professional Liverpool, which represents businesses in the Liverpool City Region, said: “The majority of our members wanted to stay in the EU and so there is bound to be a period of uncertainty now as Britain stands alone.





“To this effect, it’s more important than ever for us to regroup, respect this decision and unite as a country.





“We need to look to this as a new opportunity to govern the country and have a clear focus on continuing and building on business prosperity for the future.”

Mike Perls, the North West chair of the Institute of Directors, said that while it may not have been the result that the majority of his members wanted it was now imperative that political leaders manage the transition as smoothly as possible. 





“The weeks and months ahead are going to be a nervy time for business leaders, so they need to know that the Government is focussed on maintaining stability while a new relationship with the EU is established,” he said.





“British businesses are resilient and, with their characteristic ingenuity, they will weather this storm.





“It is now beholden on politicians to negotiate a deal with European leaders which preserves the ability of British firms to trade easily with the remaining member states.





“Even once we have left, the EU will continue to be our biggest trading partner, and the first destination for many companies when they start to export.





“One thing the Government must do immediately is to guarantee the right to remain of EU citizens currently in the UK. Companies do not want to have to worry about losing valued staff.”  





Andy Lord, chief operatios officer of Rethink Group said: “As someone who supported the Remain campaign, I am disappointed.



“However in my role at the helm of a multi-national organisation I know that with business comes great risk. 





“This decision may well take us into unchartered economic territory but I have confidence in the UK’s commercial ability to re-establish ourselves away from the EU.”



Terry Scuoler, CEO of EEF, the manufacturers’ organisation, said: “While it is not the result many businesses wanted, it’s the democratic will of our nation.

“The Government must move very quickly to stabilise the economy, reassure the markets and shore-up business confidence.

“The process of leaving the Union will take some time, and the Government should not rush to instigate Article 50 and the formal exit process, while there is so much uncertainty.

“Ministers must think carefully about our negotiating position while setting out a clear roadmap for establishing a new deal with the EU which remains our biggest market and trading partner.

Political

Colin Talbot Professor of Government and Public policy, said: “Britain is now entering a period of severe economic and political turmoil.

“The financial and money markets have already reacted badly. A recession is more than likely.

“Constitutionally the likely result is that Scotland will have a new referendum, and vote to leave the UK, before we have even finished withdrawing from the EU. Indeed they have every incentive to do so to try and stay in the EU.

“Politically we are likely to see a major realignment in British politics. Tim Farron of the Lib-Dems has already made a pitch for a centre-left realignment around a pro-EU social democratic coalition. It is hard to see how the pro-EU Tories will survive.”

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