North West bosses optimistic about long-term prospects following Brexit

The majority of North West business leaders believe the Brexit decision in last month’s EU referendum will leave their companies worse off in 2016, according to new data.

Research from accountancy and business advisory firm HURST found that although the region’s bosses are gloomy about prospects for the rest of the year, they remain more optimistic about the vote outcome’s long-term impact.

While 70% of the 2,700 managing directors and finance directors quizzed are expecting Britain’s decision to leave the EU to have a negative impact on their companies in the short term, nearly half (42%) said Brexit would have a positive effect in the next five years.

Tim Potter, chief executive of HURST, believes entrepreneurs are being pragmatic and seeking new opportunities in spite of the bleak short-term outlook.

He said: “As the trusted adviser to our clients, it is important that we listen to their concerns and offer support and guidance.

“We need to guard against being overly negative and to encourage our clients to look for ways to move their businesses forward despite the uncertainty.”

Key fears raised by respondents included the loss of access to European markets, skilled staff shortages and the impact the falling pound will have on the cost of imported goods and materials.

Elsewhere, bosses feared economic uncertainty would dampen clients’ investment plans.

One company director commented: “Many of our customers have said they will be moving their head offices out of the UK and this is likely to seriously impact on our sales.”

Another respondent worried that Europeans may be reluctant to buy British goods as a matter of principle, while others expected to face a ‘brain drain’ or lowered merger and acquisition activity levels.

Bosses who felt Brexit will be good for their companies said exports are likely to be boosted by the removal of EU regulatory shackles and the falling pound.

One said: “Although it will be a bumpy road, it will give us a chance to back ourselves and allow us to trade more freely in the global market.”

In the wake of Brexit, others revealed plans to seek trade deals in China, the US and other markets outside the EU.

Speaking further, HURST boss Tim said: “There are, and always have been, significant opportunities for North West companies beyond the EU.

“We may start to see businesses look more seriously at these markets and we are well-placed to help them do that.”