Over a third of US businesses considering relocation of UK operations

Research carried out by law firm Gowling WLG has shown that over one-third of businesses in the United States with bases in the United Kingdom are considering relocation as a result of Brexit.

The survey was carried out by the firm in order to assess the impact of Britain's vote to leave the European Union on transatlantic trade relations.

Theresa May's government is yet to invoke the crucial Article 50, which will begin the formal process of Britain's departure from the bloc, and multinational companies will wait to assess what deal she and her negotiating team can wrangle from proceedings.

39% of executives involved in the research said that their companies were considering a relocation, while 54% said they were likely to "bypass the UK in order to do business with the rest of the EU."

Trade agreements have become one of the key issues since the Leave campaign was successful in June's referendum, and combined with the election of Donald Trump as president of the US, businesses are worried about potential incoming trade restrictions.

Of the executives surveyed, 96% of US businesses say they face non-tariff barriers when trading into the EU, with the most common of these being a variation in the rules of origin and administrative delays.

"The strong UK-US trade relationship that has been carefully nurtured over the past 50 years is in serious jeopardy," said Gowling's head of EU Bernardine Atkins.

"Concerns that Brexit will have an effect on current investment decisions mean this needs addressing now, not later," she added.