Brexit: No clear plan means no clear projection
Referendum speculation has shifted from ‘if’ we are leaving the European Union, to ‘how’, with phrases like ‘Hard Brexit’ and ‘Article 50’ dominating headlines. ‘Uncertainty’ is the buzzword du jour, whether its suggestions that Irish financial firms are looking to lure London businesses on the basis of concerns over the future, to the possibilities of falling business investment and soaring inflation slowing down UK growth.
Thursday, 27 Oct 2016 11:06 GMT
With no clear plan for Brexit, an accurate forecast for UK SMEs seems a long way off
But is it all doom and gloom, in particular for small to medium sized enterprises (SMES)? Last month, the Business Barometer from Close Brothers Asset Finance seemed to suggest that ‘any real and tangible effect’ from Brexit was yet to be felt for the majority of smaller businesses in the UK, although firms in the Greater London area are reportedly feeling the pinch a little more than the rest of the country.
Neil Davies, chief executive officer of Close Brothers Asset Finance, explains: “Overall, UK SMEs feel that despite the outcome of the EU referendum, their access to finance has not been noticeably disrupted, and nor do they expect it to be. Apart from Greater London businesses, all other regions feel that Brexit will have a limited impact on their ability to raise finance.”
He continues: “We have consistently said that despite the outcome, it’s very much ‘business as usual’ and that we will continue to provide our customers with funding, as we’ve historically done through all economic cycles and periods of uncertainty. We even took out a full-page advert in the Sunday Times on 10 July saying exactly that.”
Unfortunately, ‘uncertainty’ is as apt a buzzword as we could possibly get under the circumstances—with no clear route out of the EU, and no definitive plan regarding our access to Europe’s single market, it could be a while before positive assurance returns to the UK’s industries and SMEs.
