With Brexit just around the corner and the sheer level on uncertainty looming over the UK, a number of companies are attempting to future proof themselves ready for every possible outcome. While they’re doing their best to cover everything, it’s not always possible to predict what will happen in the end. So, let go over a few of the potential impacts that Brexit could have on Britain and the UK the companies within.
A Hard Brexit
A hard Brexit defines the possibility of the UK leaving the European Union with a deal in place. This would have adverse effects on the import/export of good between the UK and any of the countries within the EU. Without a tariff-free trade status with the EU the cost if importing goods to countries like Germany could rise to an all new high.
In addition to this, UK companies could lose the ability to bid on any EU contacts. These contracts are available only to countries within the EU which means that a number of UK bidders are likely to miss out on the opportunities. The same goes for job opportunities for the younger generations. Germany will be expecting a labour shortage of around 2 million workers by 2030 but these jobs won’t be as easy to get for the UK public.
The number of foreign immigrants that work in the UK means that if we’re left with a Hard Brexit, we can expect a decline in employees. For example, within the healthcare industry, there are around 63,000 employees that are EU nationals. With this in mind, their ability to practice medicine in the UK could be affected and our NHS staff might deplete dramatically.
Scotland may leave the United Kingdom, just like some countries have from the Kingdom of Denmark. A hard Brexit might be just the thing that Scotland needs to push their governments to hold a referendum and leave the UK, this would then give them the opportunity to re-join the EU.
One of the biggest concerns, however, revolves around the border between Northern Ireland and the Republic of Ireland. With the rocky history between the UK. Britain and the Republic of Ireland, Brexit may open old wounds and result in the free border to become not so free.
We’ve asked a few companies from the UK to give us a few words on how they think Brexit could affect their businesses.
“Brexit might actually pose a risk to our business due to the terror factor that Brexit has had on other companies. Our projects will usually be high in value and for a number of large companies, whether they’re UK based or not. So, if companies decide to hold back on the larger capital expenditures and wait until Brexit has passed, it wouldn’t be ideal. Similarly, companies looking to start a brand in the UK, they may hold off on this until all uncertainties are over.
However, the silver lining to this is that businesses may not want to move offices and instead decided to simply refurbish the one they’re in. This would mean that we can still operate without concern.” – Advanced Commercial Interiors
“Brexit seems to have been good for business so far. This could be due to the fact that UK based investors are looking to diversify their property holdings. In doing so, those people are expanding and venturing into new markets like Dubai and the UAE.
With that in mind, the potential holiday home customers may start to shrink slightly as they watch their spending over the coming months. However, in the high-end holiday home market, we expect the number of investors to stay the same due to their financial stability while looking for a luxury villa in Dubai.” – Dubai Property For Sale
“While we do use manufactures in the UK, the majority of our suppliers are based in the EU. This would mean that our import expectations could change with longer lead times or slightly higher prices, which may, in turn, raise the prices for customers too.
But, with our services focusing on the luxury side of interior design, we’d expect that our customers will be less affected by the economic uncertainty.” – NGI Design
“We have operations in both the UK and the Republic of Ireland which means we may have to split our operations more decisively. However, this will generally fit in with how we try to operate anyway but in terms of products; if we needed to import anything from the EU, tariffs may make things more expensive for customers.” – Re:sure Security
I suppose the main take away for this is that there are a number of reasons that we should be worried about Brexit. The possible side effects with adverse impacts id something that we need to prepare for. Whether you’re a business or just a family, keeping track of how Brexit will impact you is important. So, you’ll need to ask yourself, what could happen to you and how can I mitigate the impacts?
By Charlie Worrall
Charlie is a Digital Marketing Executive working for a web design and marketing firm called Imaginaire Digital. Pushing for innovation, Charlie likes to keep up to date with relative news and techniques to help him in his day to day lifestyle.
Kizzi Nkwocha is the editor of My Entrepreneur Magazine and publisher of The UK Newspaper, The Property Investor and Gold, Oil and Diamonds, the net’s fastest growing wealth creation publication. Kizzi Nkwocha made his mark in the UK as a publicist, journalist and social media pioneer. As a widely respected and successful media consultant he has represented a diverse range of clients including the King of Uganda, and Amnesty International. Nkwocha has also become a well-known personality on both radio and television. He has been the focus of a Channel 4 documentary on publicity and has hosted his own talk show, London Line, on Sky TV. He has also produced and presented both radio and TV shows in Cyprus and Spain.