Yorkshire businesses ‘prepared for Brexit’

The majority of middle market businesses in Yorkshire and the North East are prepared for an EU exit, according to a new report.

The YouGov survey, the Brexit Monitor, commissioned by audit, tax and consulting firm RSM found that across more than 300 UK mid-market companies with a turnover between £30-£300m in a range of key sectors, more than two thirds (68%) of Yorkshire and North East businesses are prepared for the UK leaving the EU.

Almost nine in ten (88%) reported they had taken measures such as increasing productivity and efficiency (41%), reviewing the status of EU workers (41%) and increasing local recruitment (32%). Over a quarter (26%) said they planned to move some operations outside of the UK, while only 9% said they had established, or would look to establish, EU subsidiaries or branches.

Half of the North East and Yorkshire respondents thought that an EU-exit would have a negative impact on the UK economy in the next five years, compared to 41% taking a more positive view.

In comparison, 55% of London businesses were positive about the economic impact on the country compared to 37% who were negative.

Over a third (38%) saw new overseas markets as a current strategic objective. In addition, 32% were positive about demand in existing markets and over a quarter (29%) see technology as a positive enabler for strategic growth. Key concerns for North East and Yorkshire businesses were exchange rates, wage inflation (29%) and political change (26%).

Kevin O’Connor, RSM’s regional managing partner in the North East and Yorkshire, said: “In one of the most unpredictable operating environments since the economic downturn, middle market businesses in the North East and Yorkshire appear to be split regarding what impact Brexit will have the economic future of the UK. However, it is encouraging to see regional businesses on the front foot and preparing for change to ensure the North East and Yorkshire regions are well placed to succeed post Brexit.

‘The evident divide highlights that decision makers in the North East and Yorkshire take opposing views on whether the UK will adapt and emerge stronger from an EU-exit. Whether this view will change during the course of the negotiations remains to be seen, but initial signs highlight a mixed picture.’