The more we learn about the affects of Brexit, the worse the future looks for the United Kingdom’s business interests. A new report by the University of St Andrews has revealed that “Brexit is likely to result in lower levels of capital investment, reduced access to external finance and lower levels of growth” in addition to reduced product development and decreased international business levels. The data comes after the University surveyed around 10,000 small and medium enterprises throughout the UK.
Initially most believed that the Brexit act would result in more opportunities for local operations, however uncertainty seems to be increasing throughout the country and many SMEs are now preparing for the worst. “The analysis suggests that Brexit-related uncertainty is likely to affect larger, export-oriented firms and those operating in hi-tech and service-related industries the most.”
Last year, Britain saw its economic growth rate drop to the bottom of the G7 countries despite its record unemployment rate. Projections for the next two years are not great as well with slowed growth and an uptick in employment expected. While not a positive sign, there is still time for things to change as Brexit doesn’t actually happen until 29 March, 2019, however British Prime Minister Theresa May has asked for a two year extension to complete the European Union exit.