Brexit pushes one in three firms to plan move abroad, survey finds
Nearly a third of companies surveyed by one of Britain's biggest groups may move parts of their operations abroad because of Brexit.
Research by the Institute of Directors (IoD) found 16 per cent of its member had already initiated relocation plans, with a further 13 per cent “actively considering” a move.
Among large businesses surveyed, over a fifth said they had already moved or set up overseas operations as a result of Britain’s impending exit from the EU. Two-fifths of the companies surveyed said they were awaiting more clarity on Brexit before making contingency plans.
“It brings no pleasure to reveal these worrying signs, but we can no more ignore the real consequences of delay and confusion than business leaders can ignore the hard choices that they face in protecting their companies,” said the IoD’s interim director general, Edwin Morgan.
“While the actions of big companies have been making headlines, these figures suggest that smaller enterprises are increasingly considering taking the serious step of moving some operations abroad,” he added.
The IoD’s findings come as uncertainty continues to surround the UK’s path out of EU membership.
MPs were told to avoid making new plans for parliament’s February recess, scheduled to take place in the week beginning 18 February, as the government tries to keep pace with anticipated business related to Brexit.
The set day for the UK’s departure on 29 March is looming, with only 32 normal Commons working days remaining until the deadline, but parliament has been unable to settle on prefered method of withdrawal.
MPs voted to reject a no-deal Brexit earlier this week, while failing to pass any alternative legislation – instead compelling Prime Minister Theresa May to return to the EU to renegotiate her Brexit proposals, something European leaders have ruled out.
Yesterday, foreign secretary Jeremy Hunt said Brexit may need to be delayed to allow “extra time” for negotiations.
Tory chief whip Julian Smith emailed Tory MPs last night, telling them the decision to cancel recess had “not been an easy decision”, and saying colleagues who had unavoidable appointments or scheduled “time with their families” should form special arrangements for any votes that may arise.
Despite the decision, MPs’ programme for next week – presented by Commons leader Andrea Leadsom yesterday – contains no Brexit-related business.