Since the Brexit referendum in 2016, the political landscape of the UK has been littered with uncertainty and anxiety. Britain’s departure from the European Union has been anything but smooth and it is still undecided exactly how smooth the transition will be. The UK government are still scrambling for a positive deal with the EU but it is proving to be a difficult feat. If this uncertainty lingers, the UK could leave without any trade deal in place, putting its industries and rate of growth at risk.
New growth forecasts have been released by auditor, KPMG. The economic data predicts GDP to grow by 1.4 per cent next year in the event of a ‘good deal’ Brexit but to grow by a mere 0.6 per cent if no deal is reached. This could dramatically change the business landscape of the UK, leaving industries struggling for profit.
A separate report by accountants, BDO, revealed business confidence to be at a 15 month-low, any further bad news potentially leaving business self-esteem in tatters. Industries such as the services sector are feeling particularly pessimistic about the current situation and vulnerable sectors such as construction and manufacturing are feeling the strain.
While firms cannot do much to ease the Brexit uncertainty, there are other ways to bolster growth. Poor productivity and skills shortages have had a negative impact on economic growth, but they do not have to prove fatal. It falls to the responsibility of the business owner to improve activity and negate the threat.