Could the UK’s exit from the EU effect your business?

The potential exit of the UK from the EU, following the referendum in June, has led to economic uncertainty which would allegedly escalate after a vote to leave. The weakness of the pound so far this year has also been apparent and possibly attributable to fears that the UK may leave the EU. Some economists expect that the cumulative effect could lower the GDP growth and the effect on consumer and business confidence could trigger a recession. Further, the pound could fall and have a damaging impact on inflation with some pundits predicting that an exit from the EU could be harmful to the British economy.

With regard to the UK’s services, the biggest sector, a survey showed business activity expanding at the slowest rate since March 2013 and another report indicates a slump in employment growth in February. Overall UK economic growth has slowed to the weakest pace for almost three years, with the prospect of near term growth to slow further. Current expectations suggest interest rates will remain low perhaps into next year, with a suggested possibility of rates being cut even lower.

If your business is struggling and you feel that the issues raised above may further damage your future prospects, a free consultation with one of our experienced practitioners may be appropriate. Contact us.