New survey shows potential impact of a ‘no-deal’ Brexit on UK business investment and recruitment

New research from the British Chambers of Commerce suggests business investment and recruitment could plummet, and some business may even relocate if the UK leaving the EU without a deal on October 31.

A survey of nearly 1,600 companies, covering of all sizes and sectors of business, across the UK, found that in the event of a ‘no deal’ exit at the end of next month, nearly a quarter of firms surveyed (24 percent) say they would revise investment plans down, while just four percent would revise up. 71 percent of respondents did not state that they would revise investment plans.

Twenty two percent of businesses surveyed said they would revise recruitment plans down in the event of no-deal, while only three percent would revise up. 73 percent of respondents did not state that they would revise recruitment plans.

Larger businesses surveyed (firms with more than 50 employees) were more likely to report that they will revise investment (33 percent) and recruitment (31 percent) plans downwards in a ‘no deal’ scenario. Five percent of surveyed businesses reported they would revise investment and recruitment upwards, respectively.

Additionally, nearly one in five firms surveyed (18 percent) said they planned to move some or all of their business overseas in a no-deal scenario, signalling the possibility of a significant movement of operations by some firms away from the UK. Two percent of respondents said they would plan to move their overseas presence to UK (if they are currently partly based outside UK).

Dr Adam Marshall, Director General of the British Chambers of Commerce – a national network of 53 accredited chambers including Thames Valley Chamber of Commerce and Business West – said: “The government has repeatedly said that it wants to reach a deal with the EU, and our latest evidence shows the importance of delivering a negotiated settlement.

“A ‘no deal’ exit on October 31 would have real-world impacts across the UK. Many more companies tell us that they would revise recruitment and investment plans downward, rather than up, in the event of a no-deal exit.

“Our evidence yet again demonstrates the importance of averting a messy and disorderly exit from the EU on October 31.”