Brexit is less than two months away, but given the continuing impasse in Westminster, more British companies are plotting their own version. Nearly one in three (29%) companies are planning to, or have already, relocated their operations out of the country.
Brexit is less than two months away, but given the continuing impasse in Westminster, more British companies are plotting their own version. Nearly one in three (29%) companies are planning to, or have already, relocated their operations out of the country.
The UK is due to leave the European Union on March 29. There is apprehension that no agreement will be in place by then, which will have major implications on the ability of companies to operate across borders, besides tariffs and checks.
The Institute of Directors (IoD) said on Friday that its survey of over 1,200 company directors found that 16% had already pressed the button on relocation plans or were planning to, while a further 13% are actively considering doing so.
The trend is not restricted to big business. While more large companies had already moved operations, smaller firms are almost twice as likely to be now actively considering the prospect, it said.
Several companies, including Tata-owned Jaguar Land Rover, have expressed serious concerns over the UK leaving the EU without an agreement. It will also affect many of the over 700 Indian companies that use their UK base to operate across the EU.
The survey revealed that two-thirds of exporters to the EU were looking to relocate overseas, and four in 10 IoD members engaged with contingency planning have explored moving operations. The EU was by far the most commonly-identified destination for firms looking to move or set up operations abroad to deal with Brexit, IoD said.
Edwin Morgan, IoD’s interim director, said: “It brings no pleasure to reveal these worrying signs, but we can no more ignore the real consequences of delay and confusion than business leaders can ignore the hard choices that they face in protecting their companies”.
“Change is a necessary and often positive part of doing business, but the unavoidable disruption and increased trade barriers that no-deal would bring are entirely unproductive…We still have a chance to stem the flow, and provide enough certainty to the firms that are considering moving but haven’t yet done so”.
He added: “The UK’s hard-won reputation as a stable, predictable environment for enterprise is being chipped away. Our political leaders must keep this in the front of their minds as we enter this critical phase of negotiations”.
The UK is due to leave the European Union on March 29. There is apprehension that no agreement will be in place by then, which will have major implications on the ability of companies to operate across borders, besides tariffs and checks.
The Institute of Directors (IoD) said on Friday that its survey of over 1,200 company directors found that 16% had already pressed the button on relocation plans or were planning to, while a further 13% are actively considering doing so.
The trend is not restricted to big business. While more large companies had already moved operations, smaller firms are almost twice as likely to be now actively considering the prospect, it said.
Several companies, including Tata-owned Jaguar Land Rover, have expressed serious concerns over the UK leaving the EU without an agreement. It will also affect many of the over 700 Indian companies that use their UK base to operate across the EU.
The survey revealed that two-thirds of exporters to the EU were looking to relocate overseas, and four in 10 IoD members engaged with contingency planning have explored moving operations. The EU was by far the most commonly-identified destination for firms looking to move or set up operations abroad to deal with Brexit, IoD said.
Edwin Morgan, IoD’s interim director, said: “It brings no pleasure to reveal these worrying signs, but we can no more ignore the real consequences of delay and confusion than business leaders can ignore the hard choices that they face in protecting their companies”.
“Change is a necessary and often positive part of doing business, but the unavoidable disruption and increased trade barriers that no-deal would bring are entirely unproductive…We still have a chance to stem the flow, and provide enough certainty to the firms that are considering moving but haven’t yet done so”.
He added: “The UK’s hard-won reputation as a stable, predictable environment for enterprise is being chipped away. Our political leaders must keep this in the front of their minds as we enter this critical phase of negotiations”.