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Economy and Brexit Impacting Business Confidence

Business confidence has plummeted, with the economy and Brexit uncertainty causing business owners to fear for their prospects.


The British landscape has been irrevocably reshaped by Brexit uncertainty, economic instability and high street insolvencies. Business confidence has fallen, with both employees and directors unsure how to navigate the stormy waters. Amongst sluggish wage growth and high interest rates, the government has yet to reach a trade agreement with the European Union and the business community fear the worst.

A new monthly confidence tracker conducted by the Institute of Directors has found business optimism to have dropped to -16 per cent, with pessimism, vastly outweighing the positives. The poll reported a brief period of optimism back in April when the EU and the UK government drew up two White Papers, as well as a draft Brexit withdrawal agreement.

The positive sentiment that these documents inspired was quickly deterred by the stagnant progress that followed. The post-Brexit climate remains uncertain, with the conditions over Britain’s break from the EU dividing politicians, even within the same political party.

“Smaller enterprises, the backbone of the economy, are suffering under the weight of high costs, skills shortages and weak productivity,” said Tej Parikh, a senior economist at the Institute of Directors

According to the Institute’s survey, directors of big businesses are the most pessimistic about their role within the economy. Almost half of those who were surveyed claimed their business had been negatively impacted by the economy, with Brexit as a prominent factor. Smaller businesses have suffered similar setbacks, with high business rates and low profits squeezing household budgets and shrinking consumer markets.

The Credit Protection Association cannot influence the decisions of Westminster, but we can ease the anxiety felt by our business Members. Through our debt recovery and credit monitoring services, we encourage the financial confidence of our Members; freeing up cash flow, strengthening credit information and toughening them to whatever the future may hold.


Please call us on 0330 053 9263 to discuss how CPA can help your cashflow.
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