Investment

Brexit blowout? Big business pulls plug on £65.5bn investment

By Alex Wood 14 November 2016
image: istock/erhui1979
Summary

British businesses have already responded by abandoning £65.5bn of investments since the referendum.

While Theresa May chants “Brexit means Brexit”, British businesses have already responded by abandoning £65.5bn of investments since the referendum.

A new report from Hitachi Capital and the CEBR makes for difficult reading.

Almost half of large companies have cancelled investment plans with medium-sized businesses feeling the impact of the referendum the most.

Understandably, the fall in the value of the pound was cited as one of the biggest causes. Second to this was the ongoing uncertainty about the UK’s future role in the Single Market.

Silver lining

We all know that uncertainty can spread like wildfire and damage business confidence.

In response, Robert Gordon, CEO of Hitachi Capital, is calling on the Government to not delay Brexit decisions and to give businesses the assurance they need for the future.

“Looking outwards, not inwards, is how the UK will thrive in a post-Brexit world.”

Three quarters of the businesses that took part in the survey said they would start investing again if they had more clarity for the future.

Brexit means Brexit? It’s still as clear as mud.