Predictions for 2017: Unpredictability will be the defining feature of the year says RSM’s Kevin O’Connor

Kevin O’Connor is RSM’s regional managing partner for Yorkshire and the North East

What have been the biggest changes in your industry for 2016?

Undoubtedly, Brexit has been the most significant change this year. It’s brought a whole new layer of uncertainty to the economic backdrop, which has caused the biggest shift this year. It’s too early to know how this will manifest, but many of our clients are already seizing opportunities from the weaker pound and preparing for future challenges.

What has been your highlight for the year?

Signing the lease for our new office in the best commercial development outside of London was a real highlight for us this year. The new space in Central Square will bring together almost 300 colleagues from two offices on to one floor. This will deliver a flexible working environment for our people that will encourage further interaction and collaboration – transforming the way we work for the benefit of our clients. Although it was great to sign the lease, the real highlight will be moving in next summer.

What will be the biggest changes in your industry in 2017 and anything to watch out for in terms of market trends?

It’s difficult to predict market trends for the accountancy sector in the current economic climate. Uncertainty impacts professional services more than most. We advise on activity and the current ambiguity is bound to impact investment and economic activity, which has a knock-on effect on the sector. In the capital markets arena, this impact is already been felt as deal activity and liquidity are down and accessing funding through this route remains an issue.

However, VAT, indirect taxes and customs duty could be one to watch following Brexit. The UK Government will no longer be constraint by the EU Principal VAT Directive so will have greater flexibility to change the UK VAT system. We will have to wait and see whether any changes are implemented but one thing is for sure, post-Brexit there will be changes to the movement of goods between the UK and EU. The outcome of the exit negotiations and whether access to a single market free-trade arrangement can be reached is the crucial point that will shape any future changes.