Deal Or No Deal For The UK?

According to some of the biggest British companies, Brexit is hurting their business. In spite of the stream of optimistic economic data, senior executives from the largest 500 companies that were surveyed by Ipsos Mori said that 58% felt that the results of last year’s referendum generated a negative effect on business.

The Ipsos Mori survey revealed that only 11% of the business executives felt a positive impact from the Brexit decision. On the other hand, 31% thought that Brexit did not make any difference to their company. According to Ben Page, the chief executive of Ipsos Mori, businesses in Great Britain are suffering the pain from the economic upheaval of separating from the European Union.

Many company executives have voiced out their concerns regarding the loss of competitive advantage against their rivals in the European Union particularly if tariffs will rise to add to the costs of production and export of products. Investors are patiently waiting for the outcome of Brexit negotiations before they will commit investments to long term projects.

This week, Prime Minister Theresa May  had to face a rebellion from the pro-European Conservative MP’s who were afraid that she might walk away from the negotiations in Brussels without a deal. This could lead to potentially serious effects to businesses. However, the Prime Minister prefers not being able to make a deal instead of getting a bad deal for the UK. This raises the prospects of the UK leaving the EU to fall back to the rules of the World Trade Organization including tariff.

A large majority of businesses hope that the government will handle Brexit negotiations well to gain the best possible deal with the European Union. In terms of priorities, businesses said that their concern covers movement of labour and access to skilled labour including the retention of a single market with EU and passporting rights.

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