The UK’s vote on 23 June 2016 to leave the EU has sent shockwaves around the global economy.
Immediately after the vote, the financial markets were hit hard and sterling fell sharply to a 30 year low. Since then share prices have recovered and markets have calmed down and volatility is lower. Focus is now shifting to the impact on growth in the economy. The UK economy is growing better than anticipated immediately following the referendum but the devaluation of Sterling is causing an increase in inflation which will impact consumer spending and business profits.
Undoubtedly, there will be uncertain times ahead and market fluctuations will still occur but with uncertainty there is also opportunity.
Here, we spell out some of the changes that are on the way and will explain some of the uncertainty. We will also highlight some of the opportunities that your business should be aware of and the issues you need to manage.
Download our Brexit overview.
How to build a post-Brexit economy?
Rapid developments in technology, regulation and politics are changing the way organisations do business and we can expect more changes to come in the years ahead. These pose some interesting questions. How should businesses react in such uncertain times? How can policymakers create the right environment to help them to flourish? In simple terms, what should Britain’s post-Brexit economy look like?
A new economy is needed. One which makes the most of Britain’s talents, skills and entrepreneurialism across the entire country and is not solely reliant on any sector or region.
To create a truly sustainable and balanced new economy, which is outward-looking and helps its home-grown businesses expand abroad, we believe there are three pieces of the jigsaw that policy makers must put together:
- Encourage mid-sized, fast-growing entrepreneurial businesses in the UK, who are an essential and dynamic element of the UK economy.
- Create sector and geographic powerhouses to drive UK growth.
- Ensure open and simple access to world markets and global talent for businesses with overseas interests.
The BDO Northern Ireland Brexit Taskforce team are also a panel member and accredited Intertrade Ireland Brexit Advisor.
Through Intertrade’s “Start to Plan” voucher scheme, they can provide funding of up to £2,000 or €2,000 towards professional advice provided by BDO in relation to Brexit matters. This support can help your business get advice on specific issues such as movement of labour, goods, services and currency management. Visit Intertrade’s website for more information about the scheme and select BDO Northern Ireland as your local accredited advisor.