Small businesses 'planning for range of Brexit outcomes', research suggests

22 Aug 2018

Research carried out by banking group Close Brothers has suggested that 47% of UK small businesses have started to plan for a range of possible Brexit outcomes.

Ahead of the publication of the first of some 84 government advisory notices on Brexit and its potential outcomes, a survey of 900 businesses carried out by Close Brothers revealed that 40% of firms currently export to the EU.

57% of manufacturing firms surveyed export to the EU, and Close Brothers has suggested that it is these businesses that will be the ‘most exposed’ to supply chain disruption.

Reorganising supply chains will ‘not necessarily be a negative’ for one in five businesses, the survey found. 31% of manufacturers polled believe that reorganising their supply chain will be beneficial.

Commenting on the issue, Neil Davies, CEO of Close Brothers, said: ‘It clearly demonstrates that in the absence of certainty, businesses have taken it upon themselves to assess the impact leaving the EU will have on the supply chain, which, for many businesses exposed to Europe, is critical.

‘Every sector we polled had some level of export dealings with Europe, which demonstrates clearly just how entwined we are with the continent, and how important it’s going to be to ensure the movement of goods isn’t disrupted, both in the short and long-term.’