Businesses bullish on Brexit prospects

Ahead of this week’s EU Summit in Brussels and despite the apparent deadlock over the UK’s Brexit bill, middle market businesses in Yorkshire remain bullish about the prospects of the UK securing a good deal.

According to the latest YouGov survey, the Brexit Monitor, commissioned by audit, tax and consulting firm RSM, over half (53%) of respondents were confident that the Government could achieve a good deal. This was more than four times the 12% who said they were not confident of a good deal. This latest sentiment goes against recent fears of a no deal outcome.

The quarterly survey of more than 300 UK leaders of mid-market companies throughout the UK also revealed that a narrow majority of North East and Yorkshire businesses believe the UK’s decision to leave the EU will have a positive impact on the UK economy, the industry and their business in the next two years.

In contrast, the majority of businesses in the North West (52%) saw more negative conditions ahead for the UK economy in the short-term.

Forty-three per cent of respondents believe a new trade deal providing access to the single market but not membership should be the top negotiation priority for the UK government; and the final cost of UK exiting the EU was the second most important consideration at 42%.

Almost half of North East and Yorkshire companies reported they had already taken measures to increase productivity and efficiency (44%) and have expanded, or at least looking to expand, into non-EU markets (34%).

Almost a third (32%) said they planned to review/adjust EU supplier contracts, while 30% said they will look to review/adjust EU customer contracts to feel adequately prepared for the UK’s exit from the European Union.

The findings also showed that half (50%) of the North East and Yorkshire businesses are most positive about technology, followed by growth in existing markets (31%) and access to people and talent (26%). Whereas political change (27%), consumer confidence (24%) and regulation and legislation (23%) were the top key areas of concern for North East and Yorkshire businesses.

Kevin O’Connor, RSM’s regional managing partner in the North East and Yorkshire, said: “Despite uncertainty during the EU negotiations, North East and Yorkshire businesses appear relatively confident about the government’s ability to deliver a good deal; and this optimism has shaped the business sentiment towards the short and longer term impact of Brexit.

“The continued positivity towards the future is good to see as it suggests that regional businesses are resilient and ready to adapt and emerge stronger post-Brexit.”

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