(Pic: Fears over Brexit will harm the UK’s economy.)
One of the major concerns over leaving the EU has been the effects on businesses as the outcome is still being debated today, Liam Terry reports
Ever since the warning signs of the UK’s economy being put into a harmful position over the Brexit movement, businesses across the country had been looking for ways to secure trade deals to the European Union as a precaution. Many companies worried that the UK could end up stumbling from a chaotic leave from the EU which would, in turn, damage the UK’s economy and imports as a knock-on effect.
From the announcement of the Brexit plan, businesses and banks protested heavily. Governor of the Bank of England, Mark Carney has voiced to the public that “Britains economy would be booming – if not for Brexit.” He stressed that, for the economy to remain stable and for business to flourish, a Brexit deal would have to be made and that, in the event of a bad Brexit deal, banks would “not be able to cut future interest rates because of that inflationary pressure.”
— Peston on Sunday (@pestononsunday) November 5, 2017
But since the drop in the pound, some businesses believe the situation is getting better with more hope in the future of Brexit, data from the Institute of Directors suggests. A graph published on the 13th April 2018 shows that, although the general economy situation has as little as 1% faith in it, bosses of their own companies confidence grew up to 47% in March, up from 39% in February.
The poll created by the Institute of Directors showed that of the 700 company directors that took part optimism about the economy is at an all-time high since Prime Minister Theresa May triggered article 50 last year. Since last year, Theresa May has been optimistic about the secure trade deals the UK will have with the EU, and that whilst there’s still work to be done, the UK’s economy will still remain strong.
The official UK Prime Minister’s twitter created a info-graphical road map showing the progress made on Brexit.
To mark one year to go until Brexit, the PM is embarking on a day-long tour across the UK to demonstrate her determination to deliver a deal that works for every community and protects the integrity of the union #RoadtoBrexit https://t.co/cbWKfurjNj pic.twitter.com/B9OJJpJXxH
— UK Prime Minister (@10DowningStreet) March 29, 2018
British banks, however, remain uncertain of the future of Brexit and the effect it could have on the economy. Mark Carney has stated “It was in the interests of both Britain and the EU to reach a deal before Brexit in March 2019”. Progress has still shown to be slower than planned, and high-street banks could still suffer from a “disorderly” Brexit, despite the rise in confidence from corporations in the UK.
Concerns are still arising on the effect Brexit could have on the economy, mostly that post-Brexit prospects for the UK economy is still looking dull. Also in the survey by the IoD, 47% of respondents admitted that the Brexit UK economic conditions were having negative impacts on their business.