Birmingham tells businesses the city is still a good place to invest
THE leader of Birmingham City Council said has moved to reassure businesses that the city remains a place for investment.
Responding to the EU Referendum result, Cllr John Clancy said that while the UK could be heading into tricky economic waters, the conviction of Birmingham would be to continue to encourage growth.
“This is a moment of significant change but what will not change is my determination to bring investment and economic growth to Birmingham,” he said.
“In fact I’m already talking to potential investors and reassuring them that our city continues to be a great place to invest.
“The economic history of the West Midlands is based on manufacturing and we now need to move towards investment in advanced manufacturing. We have to find new ways of bringing capital into the region to invest and my message to the Government is that it’s time to invest in growth.
“The Government must now look to the UK’s cities, regions and nations for economic growth and continued austerity is not an option.”
Cllr Bob Sleigh, chair of the West Midlands Combined Authority, responded to the vote by saying: “We are taking stock of the referendum vote but remain confident that our recently launched economic plan will deliver positive results for the region over the next decade and beyond.
“We will continue to work alongside partners including businesses to stimulate the region’s economy and we are determined to punch our weight nationally and internationally to ensure we continue to benefit from ongoing inward investment and foreign direct investment.”
Sara Fowler, EY’s senior partner across the Midlands, said businesses in the region must use the coming months to assess the full impact on trade, people and regulation.
“We are now entering unchartered territory,” she said. “It’s the first time a member state has left the union, and this means that the consequences are almost impossible to predict.
“Above all else, it is vital that the message that the UK is open for business should not change. EY’s latest research on foreign direct investment (FDI) reveals that the UK continued to be the most attractive location for FDI in Europe last year. 2015 was also a record year for the Midlands, with 46% growth in the number of projects. Businesses will need to work alongside the Government to ensure that this remains the case and to give the UK every opportunity to prosper in the future.”
Looking at the new opportunities hinted at by the likes of Boris Johnson and Nigel Farage, she said the UK would need to make new trade deals so it is important that key trading partners were quickly identified and negotiations accelerated. “Businesses across the region must use the next few months to assess their position in terms of trade, their people and regulation.
“One thing is certain: Brexit will result in a number of large-scale changes for UK plc – in areas such as trade, employment, regulation and Government policy. Few changes are likely to happen overnight. As a result, businesses now have a prime opportunity to take proactive steps to prepare for the challenges and opportunities that lie ahead.”
Much of the sentiment was echoed by Matthew Hammond, regional chairman at PwC in the Midlands.
He said the firm was already working with its clients and people to support them as the implications of the vote became better understood.
“We are working closely with our clients and people in the Midlands to contemplate the impact of the referendum decision and its impact across the region. It’s important that the local business community shows leadership to drive the Midlands’ regional economy through this period of uncertainty, while also demonstrating the confidence to embrace the opportunities that come with change,” he said.
Adam Ramshaw, head of Birmingham and East Midlands at commercial property consultancy Lambert Smith Hampton, said the outcome of the vote was not what a lot of investors and developers had been hoping for.
However, he said while investors disliked uncertainty, there would undoubtedly be opportunities presented by the changing markets.
“As politicians figure out what the consequences are, the lack of an obvious market consensus in the short term presents opportunities for those who know where to look,” he said.
“We saw it during the financial crisis a few years ago, when smart investors spotted undervalued assets and then benefited from strong returns as the rest of the market caught up.”
He said it was now more important than ever that investors understood the local market and acted accordingly.
Chris Radford, R3 Midlands chair and partner at Gateley in Birmingham, said leaving the EU would have a major impact on the way corporate insolvency worked in the UK.
“The UK’s insolvency regime does not exist in a vacuum. It is entwined with rules on employment, tax, property, and more, and all of these are linked with European rules,” he said.
“There will naturally be uncertainty for Midlands businesses and the decision to leave could create immediate problems for some. Businesses should seek out informed, professional, and regulated advice to help them navigate any uncertainties they encounter, and the sooner they seek advice, the more options they will have.”
