The result of a survey conducted by Thomson Reuters on British CFOs is intriguing.
As per the results of a survey conducted by Thomson Reuters on British CFOs, the vast majority of British businesses are not in synch with Brexit since they have yet to change their strategic planning vis-a-vis this major decision.
In June 2016, in the run up to the referendum, big businesses were vocal about the fact that a vote to leave the EU would significantly hit investments as well as a major impact on the labor market. This uncertainty surrounding Brexit will have an impact across industries and sectors ranging from financial services to Britain’s famous car industry.
The survey shows that of the 200 CFO surveyed across Europe and Britain, 69% of businesses had not seen an impact from the vote for Brexit on their strategic planning.
“The results suggest a relatively muted response from business so far – not the knee-jerk reaction that some expected,” said Laurence Kiddle, managing director for the EMEA Tax & Accounting business of Thomson Reuters.
12% of CFOs however have anticipated moving their operations out of Britain, while 34% see a decline in the number of employees in the UK. 19% of the respondents said they plan on relocating staff as a result of Brexit.
Many are adopting to Brexit with 21% saying they have held off further expansion in the UK as a result of Brexit.
Earlier this month, the Royal Bank of Scotland disclosed it would be moving 150 jobs to Amsterdam due to Brexit.
The survey suggests that many CFOs are so far sanguine on Britain’s departure from EU with some businesses even highlighting the opportunities for firms in Brexit.
Case in point: Julius Baer, a Swiss private bank will be opening three new offices in the UK as it looks to tap into the wealth of rich UK residents who have been spooked by the vote; Amazon has also ramped up its hiring in Britain despite Brexit.
This survey comes midst Britain’s Brexit strategy being openly questioned.
British Prime Minister Theresa May’s election gamble in June came to naught, as her Conservative party lose their majority.
Pro-Brexit trade minister Liam Fox now commands the least confidence among senior British figures, scoring just 3.2.
The CFOs however have placed most of their trust in Britain’s finance minister Philip Hammond and Bank of England Governor Mark Carney, who have scored 8 and 8.6, respectively.
Both however have faced some scathing criticism from the pro-Brexit camp for their notes of caution in discussing Britain’s departure from the EU, and their emphasis on the need for a smooth transition period.