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Most firms preparing to move operations abroad post-Brexit

Staff Writer |
Over 60 per cent of businesses are preparing to move research and development facilities and teams out of the UK as they ready for life after Britain leaves the European Union, according to FTI Consulting.

A survey of over 2,000 business leaders in France, Germany, Spain and the UK found a decline in confidence that turnover, staff and new business will continue to grow despite Brexit. The share that said they believe it would be better for their firms if Britain remains a part of the EU rose.

While most respondents still expect Britain to reach a trade agreement with the EU, more than three quarters said they are preparing for a no-deal scenario with “contingency planning that could have a major impact on the economy”, it said. Yet fewer firms were making irreversible decisions than had expected to at the end of last year.

Without imports from the EU, a third of the 1.1 million small and medium-sized enterprises with suppliers in the bloc will be unable to operate, Bibby Financial Services said in a separate report Monday. More than half of those firms will struggle to find alternative suppliers out side the EU and 61 per cent would see profits fall, the survey of 1,000 companies found.

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