IoD: The impact of Brexit, six months on

Institute of Directors. Working exclusively with the Financial Times, a recent Institute of Directors survey of over 650 business leaders has looked at the impact that Brexit has had on businesses in the UK.

The research has found that:

  • Almost a third of businesses that trade with the EU have suffered a decline or loss of business since new barriers to trade were introduced on 1 January
  • 17% of businesses that previously traded with the EU have stopped, either temporarily or permanently, since the start of the year
  • Nearly a quarter of businesses that trade with the EU have had to relocate some operations or staff
  • About two-thirds of businesses anticipated that new UK customs controls would have a negative effect on trade when they are implemented in January
  • Over a quarter of companies said Brexit had caused difficulties in hiring staff, with 17% in relation to high skilled staff, and 10% low skilled
  • 17% of companies said that Brexit made them more likely to invest in their businesses, compared to 15% who said it made it less 

Responding to the research, Jonathan Geldart, Director General of the IoD, commented:

“Six months on, many businesses are still wrangling with the challenges of our new relationship with the EU. Small and medium sized firms in particular are struggling to navigate new procedures around exporting and importing with the bloc, while business leaders are more broadly reporting difficulties in recruiting following an end to freedom of movement.

“Firms of all sizes will continue to need support to minimise the costs of adjusting to the deal, alongside clarity and direction from the government to seek out any new opportunities.”