60% firms say Brexit to have ‘negative impact’

More than 60% of Scottish companies believe Brexit will have a negative impact on their business and only 19% believe that it will have a positive impact, according to a survey of 320 firms by the Fraser of Allander Institute.

One third of Scottish firms said the impact would be “very negative.”

About 40% of Scottish firms said that Brexit could have a negative impact on their investment plans — but 40% also said it was unlikely to lead to any change.

About 10% said it was likely to have a positive impact on future plans.

On recruitment plans, 55% said Brexit was unlikely to have any impact, 34% said it would have a negative impact and 4% said it would have a positive impact.

More than 85% of Scottish companies said they had done no preparation whatsoever — or “very little” — for Brexit, with less than 1% having made significant plans.

“The clear consensus amongst business is that Brexit will have a negative impact … ” said the institute.

“Resolving the current political and economic uncertainty – as best as possible – must now therefore be the key priority.

“In this regard, it is imperative that policy-makers do all they can to help reduce this source of instability to allow businesses to invest and press-ahead with their recruitment plans.

“The longer the period of uncertainty continues, the more damaging the impact will be on the economy.”

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.