Southampton: Confidence is shaken but there is long-term optimism, says BDO

According to new research from accountancy and business advisory firm BDO LLP, which surveyed almost 400 mid-market and fast-growth businesses across the UK, 82% of companies polled believe that the UK’s decision to leave the EU will damage their prospects. Only one third (29%) of the companies believe that Brexit shockwaves will have no impact beyond the short term.

There is, however, real optimism for the long term. Over two thirds (69%) of businesses in the South East (65%) say they will continue to invest during the next two years, and 60% of respondents still predict positive growth in the next 12 months, so short-term prospects are looking good.

Other findings are that despite the concern, almost half (46%) of management teams have put no measures in place to plan for how Brexit might impact on their business and their staff; and that the poll saw an almost unanimous call for the Government to retain access to the single market as part of its negotiations – 90% of the firms surveyed want to retain tariff-free access to Europe for their goods and services. 

Malcolm Thixton, lead partner of BDO in Southampton, commented: “The UK’s ambitious businesses rely on exports and international trade to thrive and achieve their high-growth targets, so it’s unsurprising they want to retain access to the single market to continue tariff-free trade with Europe. 

"It’s important, however, that management teams put measures in place within their business to prepare for what a post-Brexit world could look like. Crucially, businesses need government policies and support which will help to drive growth, maintain employment and bring investment plans to fruition.”