CitySprint: Are UK businesses truly prepared for Brexit?

According to research from CitySprint, UK SMEs’ confidence has severely dropped in preparing businesses for Brexit.

In its annual survey of over 1,000 UK decision makers and owners, two-thirds (64 per cent) have not made specific plans. Although 77 per cent appear confident about the future for businesses, this is a major drop from 85 per cent recorded in 2015.

In addition, a significant 43 per cent said they lack confidence in the government’s ability to protect their business from the impact of Brexit.

However, Patrick Gallagher, group CEO at CitySprint Group, commented: “Whatever difficulties the future holds, [businesses] have more than weathered the economic ups and downs of recent years, and by working with each other, they will continue to adapt.

“Smaller enterprises are both highly agile and deft at reinventing themselves and the way they work to suit the times. It’s their biggest advantage.”

When asked what support companies would like from the government, reducing VAT or lowering taxes comes top of the list, cited by almost half, or 45 per cent.

Rolling back austerity and creating a fund to support investment in small businesses placed next, with 29 per cent saying they would like to see a transition deal with the EU to bridge the UK’s exit.

Despite concern about the future, UK SMEs have yet to feel any significant impact on the bottom line from Brexit, with 87 per cent reporting they are in the same or better shape financially compared to 12 months ago.

However, when asked what impact leaving the EU will have on their business, around one in five, or 19 per cent, expect profit margins to decrease and one in six (17 per cent) expect revenue to drop.