Brexit vote already hurting big business - Ipsos Mori

The UK’s vote to leave the European Union is already having a negative impact on big business, according to an Ipsos Mori poll of senior executives at FTSE 500 firms.

The annual Ipsos Mori Captains of Industry study found that 58% of respondents reckoned the decision to leave the EU has hit business, with a third of respondents saying Brexit had made no difference to their situation, and 11% believing the impact has been positive.

In addition, business leaders said they expect a more negative situation over the next 12 months, with two thirds feeling their company’s situation will be deteriorate post Brexit, and only 13% suggesting it will have a positive effect.

However, the data suggests that this could improve in the long term, with a third of those interviewed saying they would see a positive impact on their business in five years’ time and 45% expecting a negative impact.

Of those interviewed, 84% agreed/strongly agreed that the government’s handling of the Brexit negotiations was vital to their business, with half of those interviewed revealing little confidence in the government’s ability to negotiate the best deal possible for UK businesses with the European Union.

Still, 96% of respondents expressed confidence that they would be able to adapt to Brexit, with more than two thirds of respondents already having taken action in response to the referendum.

Of those businesses that have started to take action, 14% of respondents mentioned putting contingency plans in place/analysing the impact of different renegotiation outcomes, while 10% said they would be moving business outside the UK. 7% are looking at currency changes/stability and a further 7% mentioned providing reassurance to foreign staff.

Ipsos Mori chief executive Ben Page said: “Unfortunately, it looks like business in this country is already feeling the pain of the economic upheaval of leaving the EU, with 58% of captains of industry stating that their business has suffered negatively since the referendum. According to respondents there is no sign that this is likely to ease this year, with two thirds saying they thought their business situation would get worse in the next 12 months.

"However, it is not all doom and gloom. 32% of respondents said they think their business will start to feel the positive effects of leaving the EU in five years’ time and the number of Captains that think it will remain a negative impact reduces to 45% when looking at long range forecast. Businesses are also ready to adapt in order to survive, and thrive, with 96% of business leaders feeling confident that their company can adapt to the consequences of the Brexit outcome.”