Economy not politics should be focus after Article 50 trigger says UBS regional head

Yesterday it was announced that the Government would be triggering Article 50 next week,  launching Britain into a post-European Union world.

UBS Wealth Management regional head for the North West and Yorkshire, Karan Sejpal, said that despite the ongoing uncertainty surrounding Brexit, Yorkshire investors have not been deterred from investing in the UK.

He said: “Actually, if you take a step back, the lack of uncertainty over the preceding year has been more unusual – uncertainty has always been around. We cease to see it for a bit, but it’s our job to help investors navigate this uncertainty.

“Investors are beginning to realise it will be part and parcel of life for the coming years. The biggest lessons clients learnt is that it’s not the politics of the situation they should focus on – the economics is fundamentally different.

“If you’re investing in in business or personal wealth, focus on economics rather than politics. The economic data has been quite strong. Investors have enjoyed some of the best returns since the crisis and it’s been quite positive for our clients.”

A survey by UBS found that almost 69% of respondents would say the referendum result has had a negligible or positive impact on their likelihood to invest in the UK.

The UBS survey found that two issues dominated the concerns of Yorkshire investors, mainly the UK economy and currency, whilst the effect of Brexit on trade concerned 13% of respondents, and the loss of access to the single market only phased 7%.

This comes as the latest Lloyds’s Regional Purchasing Managers’ Index showed business activity in the county has outstripped the UK average for the second consecutive month.

Karan, who is looking after both the Yorkshire and North West regions for UBS, said: “Yorkshire has been one of the best performing offices for UBS over the last few years and it is earmarked as the main area of growth for us, which is a strong message for the region.

“People will wait and watch and see what kind of deal we get with Brexit. Decision-making will naturally be delayed which will have knock on effects.”

He did say that a cause for concern was the necessity of putting the Northern Powerhouse agenda on the backburner as Brexit negotiations got underway.

“What’s taken a backseat is the whole rhetoric around the Northern Powerhouse. Whitehall is busy with Brexit negotiations while other major projects have taken a backseat .This will naturally have an impact on the plan to connect the three major cities in the North. It will be delayed. Once Article 50 is triggered and negotiations get underway, there will be a slowdown in the economy which will have a knock on for everybody.

“The government will have to start kickstarting the economy, that’s when the Northern Powerhouse project will come back and when concrete decisions will be made.”

“The only thing that has been slightly surprising in a way is how buoyant everyone has been, which is great testament to the country.”