More Than 80% Of Businesses Expect Negative Long-Term Economic Impact From Brexit

[Liz Seyi]

According to research that will interest many of those seeking expertise in bookkeeping in Wellington and Plymouth, over eight in 10 business owners believe the UK’s departure from the European Union (EU) will bring long-term hurt to the UK economy.

The survey, undertaken for the I newspaper six months after the end of the Brexit transition period, found that 80% of those polled felt the COVID-19 pandemic had affected firms worse than Brexit, but that in the long run, free trade coming to an end with the EU would be more detrimental.

Worries about both COVID and Brexit emerging in the findings

The poll of business owners revealed that while 47% of respondents said the first six months following the conclusion of the Brexit transition period had exerted a negative or very negative effect on their business, for almost 80%, pandemic-related disruptions had been even more damaging to their firms than Brexit.

However, more than 80% of those questioned added that in the longer term, they anticipated Brexit would have a negative impact overall, and that the UK economy would shrink as a consequence of the deal agreed between the UK and the EU.

Over half of businesses said they had seen a decline or a strong decline in revenue due to Brexit, and just shy of 45% stated that they had experienced a loss or a significant loss in the six months since the end of the UK’s ‘EU era’.

This situation seemed to be largely attributable to the process of complying with the complex new customs rules – as cited by 65% – and VAT rules, as mentioned by 50%. Among the other disrupters cited by many were additional taxes and duties (51%) and difficulties hiring staff (40%).

In addition, the survey found 81% of businesses were of the belief that the UK Government should permit more EU citizens to live and work in the UK. This is likely to reflect the impact that new immigration rules have had on businesses struggling to take on qualified staff.

Another subject touched on in the poll, was how well firms had felt supported by the Government since 1 January. Two thirds of participants said the Government had been unsupportive or very unsupportive. Over 80% also said they had found it challenging or very hard to find out about specific Brexit-related legislation

Flexible bookkeeping to aid your business’s recovery and growth

While firms across the UK differ in their views towards the impact of the coronavirus and Brexit on their operations, one thing is in no doubt: this is a time of significant change and challenge for UK business.

If you would appreciate flexible, accurate but also affordable bookkeeping in Wellington or Plymouth to support your business’s pursuit of its ambitions, there’s no need to look any further than Britebooks. Contact our team now to learn more about the advantages and setup process.