Everyday there is another news story about Brexit. Whether it is the EU’s position or the UK’s, the startling lack of updates and progress is of a major concern to businesses across the UK. So what does the future of Brexit actually hold and will the UK end up in danger?
The EU Referendum in 2016 marked a dramatic shift in UK politics. The public turned out in high numbers and delivered a result that shocked not only the UK, but also the global business community. Widely expected to produce a landslide victory for the remain campaign, the result showed that the UK had voted to end its 40 plus year membership of the trading union. Since then, there has been a rollercoaster – from the end of David Cameron’s reign as prime minister, to the UK now facing a future that lacks clarity and stability.
With this in mind, we are going to look at the options for your business post Brexit. Even if your business is not an importer or exporter, the result of the UK leaving the European Union in March 2019 will have an effect on your business. So what is the potential fallout in the immediate aftermath of Brexit?
- Value of the pound may drop significantly
This is one of the more significant, if quieter effects that may arrive after Brexit. While you may not import goods yourself as a business, it is likely that many of your suppliers will. This means that goods and services may cost more in the short term as companies try to maintain margin.
- Freedom of movement will come to an end
Freedom of movement is a key tenet of the European Union and its member states. This suddenly coming to an end in the UK could create a short term staffing problem. The UK currently brings in significant numbers of migrants every year to the UK who help to keep businesses growing. A lack of migrants could lead to a short term contraction in the jobs market forcing up wages and competition.
- Customs duties will be applied to goods arriving from the European Union
This is going to push the price up of goods and services that come from the EU member states. It will likely result in price rises being passed on to consumers.
How To Mitigate Brexit
For many businesses, mitigating the effects of Brexit are one of their current biggest headaches. This is especially true for companies that work internationally. While clearly we do not have a crystal ball and cannot predict the outcome of the negotiations, the only thing we can offer is that it may be a good idea to think about future proofing your business. If you are growing, there is no reason to panic and expect that growth to stop. The UK is a mature and diverse economy and will likely weather any storm. We would suggest that getting hold of staff may be the biggest issue you face in the short term and that if you are looking, you may want to get the positions filled. Looking to expand? Property prices are likely to be unsteady and making the most of your current property is a worthwhile investment in long term growth.
In short, the negotiations may well change and a deal may be reached that prevents a no-deal scenario, but by being adequately prepared, your business should be able to weather a short term storm.
Where We Fit In
If you need to expand your capacity within your current property then please get in touch. We have a range of stylish bespoke mezzanine floors that can help you to do more with your business. Call us today on 0800 085 1022 or use the form on our contact page and we’ll get back to you to discuss your requirements and how we can help to make them a reality.