How Might Brexit Impact UK Businesses? Jan 18, 2019Views: 292
While the United Kingdom attempts to deliver on the Brexit referendum by March this year - whether that's with May's deal, no deal or even no Brexit at all - many businesses are growing increasingly frustrated with the ongoing uncertainty. From manufacturing to services, finance to construction, it seems business leaders across the UK are growing more and more worried about what Brexit will mean for them.
But how might Brexit impact UK businesses? There are, of course, a plethora of different implications of the UK's exit from the European Union, some of which will be almost impossible to predict. But a fair assumption would be that it will affect those who export to European markets. In 2015, the UK exported £133 billion worth of goods to the EU - about half of global goods exports. According to some predictions, a no-deal Brexit will result in the loss of £4.5 billion per year in exports, highlighting why so many business leaders are keen to avoid crashing out without a deal. While many suggest the UK could thrive under a WTO trading agreement, Oxford Economics suggest that the long-term cost implication to the UK economy would be between 1.5% and 3.9% of GDP by 2030, under WTO rules.
It's not just export businesses that could suffer, however. UK job site Indeed has suggested that the UK's unemployment rate would increase to 6.5% after Brexit (due to recession), as well as noting a severe shortage of skilled and unskilled workers in the UK. This would be down to many of the 2.1 million European immigrants working in the UK potentially looking for jobs within the European Union.
When you also factor in the possible reduction in foreign investment, manufacturers having to deal with the loss of European-wide standardisation (for example the CE mark) and businesses moving their operations out of the UK, it's clear to see why many are concerned about the future of British businesses.
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