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Critical business decisions by London SMEs already impacted by Brexit, according to survey

London SMEs are already having their business decisions and plans hampered in the wake of the EU referendum according to a new survey.

SME accounting firm Robinsons Chartered Accountants, asked over 800 firms in the capital what their key concerns were following last month’s Brexit vote and what sort of impact this was having on their ability to do business.

The survey found that the biggest concern amongst those surveyed was the lack of political leadership currently blighting the UK’s political landscape as the Tory leadership contest, which is only now reaching its conclusion, and the turmoil within the Labour party only adding to the current uncertainty.

This was quickly followed by fears that the downgrading of the UK’s AAA credit rating will increase the cost of borrowing and hamper the government’s ability to reduce the deficit.

Joseph Robinson, Managing Partner of Robinsons, was mindful about these common concerns and cautioned business owners that it was crucial that they stayed ‘objective’ and ‘proactive’ in the face of uncertainty.

He said: “The uncertainties brought about by Brexit are undoubtedly forcing businesses to re-assess their position but, providing they look for both risks and opportunities, there is no reason they won’t be able to mitigate any long-term negative effects.”

Further concerns on the part of SMEs related to the trading and free movement fallout following Brexit, with uncertainty about cross-border trading and any potential brain drain of European expertise prevailing worries.

Joseph added: “London SMEs are understandably worried about a possible slowing of economic growth but they cannot stand still. A potential lack of political decision could create a sterile business environment. In contrast, small and medium sized businesses need to proactively plan for the future.”

“Research and development and new capital investment are likely to be the first areas to suffer but scenario planning will enable businesses to trade through any resulting economic slowdown with added assurance.”

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