More than 40 per cent of businesses say Brexit is affecting investment
AROUND 40 per cent of businesses in the UK say Brexit has negatively influenced their investment decisions according to new research.
According to a CBI (Confederation of British Industry) survey of 357 businesses conducted between June 28 and July 3, over 40 per cent of businesses claim Brexit has affected investment, with almost all (98 per cent) stating this impact has been negative.
Companies reporting that Brexit had negatively influenced their investment decisions cited general uncertainty over the UK's future relationship with the EU. In contrast, the weakness of sterling against the dollar was viewed as the only positive impact.
Almost 60 per cent of firms that responded to the survey said that Brexit had not affected their investment decisions.
CBI chief economist Rain Newton-Smith said firms need more clarity and continuity to support investment.
It is reassuring that the majority of businesses that responded to our survey do not feel that Brexit has changed these vital spending plans. But we must have our eyes wide open: an overwhelming number of those that did report an impact said it was negative. Government must do all it can to reverse this. Today's investments are tomorrow's jobs."
“To help British business remain optimistic and keep uncertainty at bay, the Government must work quickly to agree the terms of the transition and future trading arrangements.That's why the CBI has suggested staying in the single market and a customs union until a final deal comes into force. This is the simplest way of ensuring companies don't face a damaging cliff-edge and that trade flows can continue without disruption," she added.
Across the UK, the CBI speaks on behalf of 190,000 businesses of all sizes and sectors. The CBI's corporate members together employ nearly seven million people, about one-third of private sector-employees.