East Mids economy remains ‘robust’ post-Brexit vote

The East Midlands economy has remained “robust” since the Brexit vote according to an influential regional survey.

According to the results, domestic sales have held up and – despite a dip in the months immediately following the referendum – overseas orders have grown, particularly for manufacturers looking to benefit from favourable exchange rates and keen to be on the front foot for any opportunities arising from negotiations to leave the EU.

However, says the Chamber, uncertainties remain for both immediate and long-term operating conditions, in the first real acid-test of the impact of the vote to leave the EU.

In the immediate future, the survey revealed, businesses have concerns over stability in exchange rates, interest and inflation and the difficulties these create for planning and investment.

While many were encouraged by the moves taken by the Bank of England over the summer to shore-up confidence, there were concerns that the levers held by the bank have now been pulled and there is little scope for further activity.

In the longer-term, says the survey there is still little clarity over what the main features of a successful UK economy outside of the EU will be.

Not only is there still a complete lack of time-scale, there has been very little communication from Government in areas such as the types of trade deals the UK will negotiate and what leaving the EU will mean for businesses that employ staff from EU countries or follow processes and regulations set or informed by EU directives.

The Chamber says that Government Ministers have, to date, put this lack of information down to supporting their negotiating positions with EU counterparts. However, businesses said they felt that, while they may not be able to get all of the answers, more could be done to demonstrate a road map and direction of travel.

Chris Hobson, director of policy at East Midlands Chamber, said: “It must also be stressed that defining a vision for a successful UK economy outside of the EU is about much more than Brexit negotiations. There are also domestic policies and measures that can be introduced now to demonstrate the type of economy business wants to create.

“In the forthcoming Autumn Statement, the Chancellor has an opportunity to demonstrate a commitment to providing the right conditions at home for businesses to thrive.”

“Business requires first class road and rail infrastructure to move goods and people. It needs reliable, fast broadband to operate and to promote activity across global markets. They need policy that will support firms that want to invest or grow overseas.”