EU Referendum: North West business leaders react to Brexit result

The results are in and the electorate has voted for Britain to leave the European Union after 43 years of membership.

With Prime Minister David Cameron announcing his resignation today (June 24) and the pound plummeting to its lowest level since 1985, the UK is now fighting to secure short-term stability as it embarks on the lengthy process of disengaging from the EU bloc.

Here in the North West, voters were decidedly split over the decision.

In Liverpool, 41.8% of people wanted to leave the EU and similarly, in Manchester that figure stood at 39.6%.

However, move just a little north to Bury and you’ll find a clear majority in favour of leaving, at 54.1%. Likewise, 54.3% of Warrington’s voters wanted to see Britain go it alone.

Travel on into Lancashire and you’ll find similar majorities favouring a leave vote, particularly in West Lancashire (55.3%), Fylde (57%) and Blackpool (67%).

Further north yet, in Cumbria, there were stark differences between some of the county’s local authority areas. For instance, in South Lakeland 52.9% of voters opted to remain in the EU, but in Carlisle that number dropped to 39.9%.

Now the referendum is over, what does the region’s business community have to say about the result and its implications for the future of Great Britain?

Here’s a roundup featuring some of the top comments from North West business leaders:

John Hall, chief executive of Professional Liverpool

“The majority of our members wanted to stay in the EU and so there is bound to be a period of uncertainty now as Britain stands alone.

“To this effect, it’s more important than ever for us to regroup, respect this decision and unite as a country.

“We need to look to this as a new opportunity to govern the country and have a clear focus on continuing and building on business prosperity for the future.”

Justin Gibbs, director and founder of Manchester plumbing firm Bluewater Plumbers

“As a small business owner in Greater Manchester, I was firmly part of the Remain camp.

“The support of Europe, the funding opportunities and the growth for small businesses like mine was evident; I hope that today, as we move forward into this new commercial and economic era, we don’t fall foul of the uncertainty that surrounds us.”

Jane Parry, managing partner and head of tax at Blackburn- and Burnley-based accountants PM+M.

“We are now in uncharted territory and likely to see continuing instability across the economy and political arena for some time to come.

“For North West businesses which desperately need the confidence and certainty to be able to plan ahead, that isn’t likely to be in place any time soon.

“That is particularly the case for businesses which rely on export markets, but the effect is likely to be felt across the whole business community and economy.

“The immediate priority for businesses is to understand what they can do to give comfort and confidence to investors and funders and to start to put a plan in place to navigate the business through the next two years.

“For private investors and those who rely on investment income, the immediate advice has to be to sit tight and not make any immediate decisions. Get some advice once the initial post result turbulence has settled down and then start to make some informed decisions.”

Mike Perls, North West chair of the Institute of Directors

“While this may not have been the result that the majority of our members wanted, Britain has voted to leave the EU, and it is now imperative that our political leaders manage the transition as smoothly as possible.

“The weeks and months ahead are going to be a nervy time for business leaders, so they need to know that the Government is focussed on maintaining stability while a new relationship with the EU is established.

“British businesses are resilient and, with their characteristic ingenuity, they will weather this storm. It is now beholden on politicians to negotiate a deal with European leaders which preserves the ability of British firms to trade easily with the remaining member states.

“Even once we have left, the EU will continue to be our biggest trading partner, and the first destination for many companies when they start to export.

“One thing the Government must do immediately is to guarantee the right to remain of EU citizens currently in the UK. Companies do not want to have to worry about losing valued staff.”

Kaye Whitby, partner of North West law firm SAS Daniels’ corporate group.

“The North West’s trade links with Europe are considerable. According to Labour party statistics around half of our export trade goes to Europe. If you include service’s exports then the share drops a little, yet the figure is still sizeable at around 45%. With the UK’s total exports accounting for around 30% of British output, and the value of goods and service exports into the EU accounting for 14% of the overall UK economy it’s easy to see just how much of our NW economy depends on trade with the EU.

“The trading links are in fact wider if you also include the other 60 or more countries (such as Switzerland, Norway and South Africa) that the UK trades with freely as part of the free trade agreement that we have in place with the EU.

“But what will leaving the EU actually mean in terms of the legal trading agreements that we have in place with the EU? The fears of some of our exporters that they will be left ‘high and dry’ may be unfounded - at least for a period of time. Under Article 50 of the Treaty on European Union, we have two years to negotiate a withdrawal agreement before the various Treaties will cease to apply to us. This means that for the next two years we will still in effect be part of the EU, and have access to the single market.

“In fact, under the renegotiated terms Britain could remain part of the single market by becoming a member of the European Economic Area. This established free trading relations and access to the single market for countries outside of the EU.

“While much of the detail our exit is still unknown, it is likely that exporters will incur additional costs when selling into the EU. These could include the extra cost of clearing customs and the administrative costs of complying with EU administration, as well as other non-tariff barriers such as quotas. We will also have to comply with European product standards in order to sell into the EU in the first place.

“However, at the same time we should not forget that we successfully send half of our exports to countries that are not members of the EU, despite, incurring the costs of export we may see now as a result of our exit. It is also worth pointing out that the UK was only the 28th fastest growing exporter to the other 11 founding members.

“The net effect of Brexit will depend on a host of issues, some of which, we do not yet know. It will depend on the outcome of negotiations about the UK’s new trading relationship with the EU. This will need to be put into context against the future economic growth of the Union versus other markets and the success of the EU in implementing new free trade agreements with other countries.”

Simon Allport, North West senior partner of professional services firm EY

“The initial impact of the vote to leave the EU may not be felt straight away as we will still likely be full members during the negotiations.

“There is a risk that we may see investments continuing to be delayed and transaction activity continuing to be put on hold in the face of heightened uncertainty.

“The longer term picture however is another matter. Businesses across the region must use the next few months to assess their position in terms of trade, their people and regulation. Europe is a significant investor in the North West, as our recent UK Attractiveness Survey shows, in particular from Germany and France.

“Organisations need to assess their access to key export markets, imports and the relevant impact on their supply chains. Access to skilled staff will be high up the agenda for some sectors.

“Businesses across the region will also be keeping a close eye on any changes to regulation and to Government policy, particularly around issues such as taxation, EU research funding and potential use of state aid by UK Government to back selected sectors. Although any changes are likely to take time to come through.

“We do not know the exact changes that we will be facing over the coming years, but this time can be well-spent by strengthening current positions and relationships, planning for the most-likely scenarios and looking out for new opportunities that will come.”

Carl Williams, North West managing partner of professional services network Grant Thornton

“There will considerable uncertainty for some months as a result of this result.

“With exports being such an important part of the North West economy businesses here will want, as a priority, to see some strong leadership from the government on securing new trade deals with Europe and the rest of the world.

“It is important too that the much welcome focus towards rebalancing the economy by bringing forward the Northern Powerhouse agenda is not lost. As business leaders we must drive it forward where we can.”

Phil Foster, managing director of Bolton Love Energy Savings

“One of the biggest expenditures for small businesses will be their energy, and the UK public have been warned recently that leaving the EU could have negative consequences on our bills.

“With the possibility of rising energy prices, small business owners should look to cut back wherever they can. This can include introducing some energy efficiency policies for your office, whether that’s greener LED lightbulbs, installing bigger windows for more natural light or adding movement detectors to turn off your lights automatically.

“There are so many small changes to be made, and they all add up to save a great deal of money for SMEs.”

Stephen Cowperthwaite, regional senior director of property consultants Bilfinger GVA (Liverpool)

“As we are already witnessing, the vote to leave will present a changing market dynamic, with a period of uncertainty at least in the short term.

“What is certain in the short term is that we will see a negative impact on trade volumes, foreign direct investment levels, exchange rates and borrowing costs.

“It is vital therefore that Government moves decisively to set out how the UK navigates through this new economic landscape, and so allows us to reach a more certain and stable outlook in the medium to long term.

“At Bilfinger GVA we have maintained a presence in Liverpool through recent challenging times and our strong multidisciplinary team will continue to provide leading real estate advice to assist our clients.”

Graham Davidson, managing director of Sale-based Sequre Property Investment

“The decision to leave is truly a once-in-a-lifetime decision and should now be embraced.

“The UK economy is going from strength to strength and the people of the UK have decided that now is the time for us to break away from the rest of Europe and gain back more control on our own future. Our economy continues to develop, particularly outside of London in light of the Northern Powerhouse agenda which is key to growth.

“Investment in Manchester over the past 12 months for example has been unprecedented and this month it was announced that MediaCityUK is set to double in size, with investment from UK companies creating thousands of new homes and job opportunities - a show of confidence in what we can achieve on our own. It’s safe to say The Northern Powerhouse agenda is well underway, and the referendum results being announced in Manchester’s town hall was testament to this.

“The reasons for investing in UK property won’t change, with returns still outperforming all other forms of investment. Our own business is testament to this – enquiry levels have not declined despite what much of the media has portrayed; people understand that property investment can be highly rewarding, whether you are topping up your pension, saving for your children’s future or looking for additional regular income.”

Mark Rawstron, head of property consultants Bilfinger GVA (Manchester)

“The decision of the electorate to leave the European Union presents a significant market challenge. Whilst any attempt to quantify the effect of the leave vote remains speculative, the impact will undoubtedly be felt across all areas of our economy, particularly in the short term.

“Nevertheless, despite the economic uncertainty this decision creates, our advisory offer provides a stable platform from which to assist our clients in adjusting to this new market dynamic.”

“What is certain in the short term is that we will see some negative impact on trade volumes, foreign direct investment levels, exchange rates and potentially borrowing costs as markets react.

“It is vital therefore that Government moves decisively to set out how the UK navigates through this new economic landscape, and so allows us to reach a more certain and stable outlook in the medium to long term.”

Mark Mitchell, CEO of Altrincham-headquartered Meridian Business Support

“The result is shocking and it’s a sad day for the UK. We now face a level of political instability and an uncertainty over who is going to be the next Prime Minister.

“As a country we will become less relevant. In the years to come, I expect we will experience a significant lack of investment in major industries as other countries wont want to trade with the UK. Brexit means we are isolating ourselves and we may not seem favourable to other countries.

“The result makes us appear to be less friendly and tolerant and has turned many of our workforce into official immigrants than colleagues – this will have a detrimental effect on staffing.

“Brexit will have a major impact on start-ups and businesses. The economic impact will be damaging as we have cut ourselves off from a valuable source of skilled labour and we may have cut ourselves off from the single market. It’s going to take a lot of time, money and effort in order to get new trade agreements up and off the ground.

“But we have to respect the vote, and get on with it.”

Conrad O’Neill, director of commercial property agent Canning O’Neill

“This is bad news for the commercial property market, which dislikes uncertainty and instability. It’s bound to cause some form of slowdown/dip in the short term but the prevailing market dynamics are such that we are unlikely to see the falls witnessed between 2008 and 2010.

“The question that is impossible to answer is how long the effects of Brexit on the commercial property market will last. Long term we will recover and, who knows, we may be better off economically out but the country has taken a leap into the unknown.

“Some development plans are bound to stall or possibly be shelved as developers wait to see how Brexit plays out on the economy. One could however also make an assumption that uncertainty creates opportunity for those who know where to look.”

Ged McPartlin, sales director of Manchester-based sales and lettings agency Ascend Properties

“While the initial shock might be hard to swallow for some, the reality is that Manchester’s economy has never been stronger – and will only continue to grow.

“The level of internal investment pouring into the city has reached many millions of pounds, spanning new homes, commercial ventures, offices and infrastructure.

“Manchester will also be seeing investment from China which will be going into Airport City, testament to the strength of the Northern Powerhouse. We are confident for the future.”

George Downing, founder of the Liverpool-headquartered property group Downing

He said: “I’m shocked and surprised that we’ve won - the polls had been suggesting otherwise. People need to stay calm. There will be some turbulence but we are now in a position to negotiate and deal with Europe more on our own terms.

“It’s disappointing that David Cameron has made the announcement about stepping down so soon. I understand why he’s done that but it’s not immediately helpful.

“The UK is attractive from a property investment perspective - and it’s also a great place for students from overseas to learn - and that reality is not changed by today’s events.”

John Green, director and chairman of Blackburn-based Pierce Accountants

“Despite any immediate market movements, the underlying economy is sound. Only last week we completed a company sale for a very good price all paid and funded by the purchaser on completion.

“We have another deal in progress using entirely new bank funding. The governor of the Bank of England reassured the markets that following the credit crunch, the banks are ten times more resilient having raised new capital.

“This means there will be lending available for local businesses as normal to help them trade and develop. As we move towards our actual exit there will inevitably be opportunities for the nimble.

“Consequently, although we now face a period of change and readjustment, business life should continue as normal.

“The underlying principles of selling your goods at a profit, having a strong and loyal workforce, with access to funding and a resilient balance sheet and good advisers, will not change.

“North West business people are very determined folk and they will now set out their stall to manage this period of change and take advantages of the opportunities that trading in new markets, or ones with different rules and legislation, will bring.”

Andrew McFarlane, director and head of the North West offices of commercial real estate Colliers International

“Today, it’s far too early to know many of the possible effects and indeed the changing political landscape of the next few months will bring new issues to the fore.

“This is a result that will create a period of political, economic and financial volatility, all of which is likely to conspire to moderate real estate activity.

“Of course, we should not forget the UK’s significant real estate market, our appeal to international capital and our strong position in the global economy.”

Michael Conway, managing director of Trafford Park-based personalised clothing firm Clothes2order.com

“I am disappointed that the UK has voted to leave the EU. Like some of the people who work for Clothes2order.com, I wasn’t born in the UK. The single biggest issue for growth businesses like ours is finding people who have the skills we need, wherever they are.

“All of our staff, irrespective of their country of birth, make a huge contribution to the business and the economy by working hard and paying taxes. The UK has been the fastest-growing economy in Europe for four consecutive years. European migrants have contributed hugely to the UK economy and the multicultural nature of our country.

“Within the business we remain one team. As a company, constant innovation is a core value. We are used to reacting and achieving, and we will continue to do so.

“Our vision remains unchanged – to be the world’s favourite supplier of personalised clothing. We will continue to find ways to expand the business and to employ the best people who fit our values.

“It will be at least two years until the UK can leave the EU. It is my belief that for the UK to continue to be successful, it will need to have access to EU markets and will need to continue to ensure the free movement of people.”