Member Article

London SMEs undecided on 'Trump effect' but majority still backing soft Brexit

Small and medium-sized businesses in the capital are split over the economic impact of Donald Trump’s US election win, but a majority are still hoping for a soft Brexit according to a new survey of business sentiment in the UK.

Of 1,100 small businesses surveyed as part of the Citibase Business Confidence Index, 18% of those based in London believed Trump’s presidency would have a positive impact on their business compared to 19% of those who think it will negatively impact their prospects.

By comparison, 36% of Welsh small business owners and 28% of Scottish business owners surveyed believed Trump would negatively impact their business, making them the two regions most wary of the new President.

With Brexit also set to dominate the economic and political agenda in 2017, London-based businesses seem far more united in their desire for a soft Brexit over a total withdrawal from the European Union’s single market, in contrast to the Cabinet’s increasingly hardline rhetoric.

According to the survey, over half (54%) of all London SMEs canvassed were hoping for a soft Brexit compared to a UK-wide average of 42%, hinting at the greater appetite for close ties with the EU amongst the capital’s firms.

Steve Jude, Chief Executive Officer at Citibase commented: “SMEs are the heartbeat of the UK economy and we have found that both Trump, and the impact he is having on the world, along with the confusion surround the UK’s Brexit strategy has been mostly water off a duck’s back for our country’s SMEs.

“When it comes to the type of relationship SMEs want with Europe, opinions are mostly in favour of a ‘soft’ Brexit, which is timely with the fluctuation of sterling due to ongoing Brexit discussions.”