North West bosses divided over Brexit impact

More business bosses in the North West believe leaving the European Union would make their companies worse off than better in the long run, but the margin was narrow.

A new poll, conducted by accountancy and business advisory firm HURST, collected the opinions of 2,823 managing directors and finance directors in the region over the potential impact of a Brexit.

The respondents, who remained anonymous, were asked the question, ‘If the UK leaves the EU, how do you think your business will be faring in five years’ time?’

A third (33%) said they believed their business would be worse off, but 32% said they would be better off. The remaining 35% predicted no change to their firm.

Carried out online, the research gave respondents the opportunity to express why they held their views.

The 33% who said Britain leaving the EU would make them worse off cited fears over a potential fall in the value of the Pound, as well as general economic uncertainty, shrinking overseas investment and the loss of access to key markets in Europe.

Some of the comments included:

“I feel it will lead to anti-British feeling and have an effect on UK firms’ ability to win business.”

“There will be carnage, the pound in free-fall, and it will take years to sort out trade agreements.”

“My gut feeling is that we need to work together with our near neighbours to compete with the big economic regions of the USA, China and Russia. Tariffs could well be imposed and these would be detrimental to all manufacturing sectors.”

“Costs may rise due to barriers, but it will be impossible to increase our selling prices, affecting our turnover, margins and then jobs.”

Meanwhile, respondents who believed a Brexit would positively impact their businesses cited less EU red tape and more competitive exporters’ prices.

Comments included:

“There will be a wider market place to go for, unfettered by EU rules. The pound may devalue, so making my prices more competitive.”

“There’ll be less interference from Brussels in the running of our company, less red tape and an ability to exercise more control over our own destiny.”

“We will be in a much better position because we will have to be more competitive. It will be a massive catalyst to change, and we can become a real powerhouse on the world stage.”

“As an SME manufacturer and exporter, EU regulation which strongly favours multinationals restricts our work and our exports.”

HURST’s chief executive, Tim Potter, said: “We wanted to understand what our client base felt about the potential long-term consequences of a Brexit on their businesses.

“While the raw results show there is a virtually even split, the comments do shed light on the fears and hopes of north west entrepreneurs in relation to Britain’s membership of the EU.

“Some see a Brexit as a great opportunity to explore new markets while others feel it could prove harmful to their prospects.”