Only one in four UK manufacturers have a clear understanding of Article 50 and what implications it has on their businesses.
This is according to the latest ‘Business Barometer’ survey undertaken by Close Brothers, which suggested there is much uncertainty about how the current situation will affect them in the short, medium and long term.
“Among smaller companies (those with a turnover less than £500k) the lack of understanding is even more acute,” said Neil Davies, CEO, Close Brothers Asset Finance and Leasing. “In that category of respondents the figure falls to only 19 percent, which is indicative of how little people really know about Article 50 and its potential impact.”
Over half (52 percent) of businesses were ‘unsure’ whether the triggering of Article 50 would have any measurable effect on their business; 21 percent felt it would while the remaining 27 percent said ‘no’.
“In the absence of any certainty, business owners are left with no choice but to adopt a ‘wait and see’ approach,” said Davies. “In common with a year ago when the Brexit outcome was announced, companies are getting on with their day-to-day activities and hoping for the best outcome.”
A large minority of business owners – 40 percent - are of the opinion that the triggering of Article 50 will lead to the break-up of the UK, with Scotland (53 percent) and the Republic of Ireland (61 percent) being the most convinced.
“While these results are speculation only, it speaks to the uncertainty about the future of the UK in its current form,” said Neil. “This brings with it concerns about impact to their business, which in turn can lead to caution when making investment and growth decisions, with many deferring until there is more certainty in the market. For now, though, it is something we are all going to have to live with.”
Businesses were split down the middle when asked ‘do you think triggering Article 50 will bring more or less clarity to our relationship with the EU?’, with 49 percent answering ‘more’ and 51 percent saying ‘less.’
“For many UK businesses, Europe is a key market, and will continue to be so regardless of the outcome of the Brexit negotiations,” continued Davies. “Triggering Article 50 on its own does not seem to have brought the clarity many were hoping for.”