Yorkshire businesses "increasingly divided" over Britain’s EU membership

The business community in Yorkshire appears to be divided in its support for the UK’s membership of the European Union (EU), according to a survey of senior business leaders carried out by Business Growth Fund (BGF).

53% believe that British businesses are better off inside the EU than out of it. This marks a drop on the 71% who said that the UK’s membership of the EU is good for British businesses in June last year - pointing to growing support for Brexit among the business community.

However, 78% of respondents claim that the UK’s membership of the EU gives British businesses invaluable access to European markets while 59% are concerned that an EU exit could directly affect business growth.

Looking ahead at the potential implications of a leave vote, 53% of respondents say that Brexit will prompt multinational companies to relocate operations overseas while 69% believe that it will trigger another Scottish independence referendum.

But 75% of respondents believe that Britain’s membership of the EU provides British business with unnecessary and problematic regulation. While 56% of respondents claim that an EU exit would not leave British businesses facing a skills shortage – compared to 28% who think it would.

The BGF Growth Climate Index identified macro-economic conditions (38%) and instability in overseas markets (28%) as the biggest factors holding businesses back from growth. Only 16% expect conditions for growth to improve over the next quarter (compared to 39% in November 2015) while 53% expect them to stay the same.

Yorkshire businesses, however, remain focused on growth as 94% said that the objective of the companies they work with is to pursue growth over the next quarter, compared to just 6% who plan to consolidate or remain the same size.

Andy Gregory, BGF’s regional director for North, Scotland & Northern Ireland, said: “The Growth Climate Index exclusively seeks the views of senior business leaders who are committed to supporting Britain’s most ambitious small and mid-sized businesses. The poll shows that opinion among the Yorkshire business community is increasingly divided when it comes to Britain’s membership of the EU.

“It’s also clear that despite uncertainty prompted by the vote, and economic instability overseas, businesses remain committed to growth. In uncertain times it is crucial that these companies get the support they need to innovate, export, grow and prosper.”