Since the Brexit referendum back in 2016, UK firms has suffered severe bouts of low self-esteem. After the vote to leave the EU, the country was overcome with devastating uncertainty. The government has struggled to reach an agreement with Brussels on trade conditions and the post-Brexit landscape is still blurred. This ambivalence has led to subdued behaviour from business owners, with investment postponed and confidence at record-lows.
This new report from accountancy group, Deloitte, further illustrated the UK’s precarious position. While the economy has shown signs of improvement, the undercurrent of uncertainty is still threatening future prospects. This is specific to Britain’s future trade relationships, with Deloitte identifying anxiety over trade relations as a major factor for low optimism.
The accountancy giant’s survey found that only 13 per cent of chief financial officers were more optimistic for their prospects than three months ago. A further 79 per cent expect long-term conditions to worsen as a result of leaving the EU, up from 75 per cent in 2016 and the highest level since the referendum.
This professional anxiety has led businesses to jump ship. Since the announcement of our departure from the EU, firms have jump-started contingency plans.
US investment banker, Goldman Sachs is in the process of moving large numbers of staff out of London and into offices in Frankfurt and Paris. Chief executive Lloyd Blankfein has agreed to leaseback the London headquarters to Korea’s National Pension Service, but the diminished enthusiasm for the UK business landscape is very clear. Investment market Lloyd’s of London has also accelerated plans to transfer contracts to a Brussels subsidiary, particularly as the possibility of a no-deal Brexit becomes more likely.