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Gloucestershire Business News

Brexit uncertainty hits business confidence

Just over a year after the UK's decision to quit the EU, business confidence in the West of England has plummeted, according to a new survey.

The business organisation Business West says confidence is at its lowest level since the depths of the 2009 recession and down by 22 per cent compared with this time last year.

Almost two-thirds of the firms surveyed by Business West cited falling domestic sales, increased inflationary pressures and the lack of a clear roadmap for exiting the European Union as factors contributing to the gloom.

One food wholesaler based in the county said: "We've been really hit since June 2016 on £ currency devaluation. Huge uncertainty is leading to paralysis in some quarters."

A similar view was echoed by Geoff Norton of Silicon Hoses in Gloucester who said: "We purchase our products in US$ and sell in GBP. Since June the 8th last year we have seen a 22 per cent increase in our purchasing prices due to the decline of GBP following the referendum vote."

David Hayward of David Hayward Design in Cheltenham commented: "The future is very unclear due to the vote to leave the EU and the effect it has had on the economic outlook."

Commenting on the survey results Ian Mean, director of Business West in Gloucestershire (pictured) said: "Not since the recession has the UK's economic outlook tallied so closely with what is happening on the ground for businesses in Gloucestershire.

"It is becoming abundantly clear that the backdrop of Brexit, a heavily weakened Government and high levels of uncertainty are weighing on business confidence like a millstone around the neck, suffocating growth and investment.

"In a quarter marked by a General Election campaign and outcome which few were anticipating, and with the clock now ticking on Brexit negotiations in the absence of any clarity on the likely shape of a future deal, "uncertainty" seems to be the watchword as we hit the middle of 2017.

"Now that Brexit negotiations are under way, there is a pressing need for clarity on the Government's negotiating aims. Many firms feel that their concerns and interests have not been adequately registered to date, and will now be calling strongly for an approach to Brexit which puts the needs of businesses first and affords them the time and the assistance necessary for adapting to life outside the EU."

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