What will a ‘no deal’ Brexit mean to middle market firms?

Economy & Politics | Surveys

One third of middle market firms in the South think that leaving the EU without a deal would have a positive effect on their revenues, according to a new survey by audit, tax and consulting firm RSM.

34% of the region’s mid-market business leaders surveyed said they thought exiting the EU without a deal would benefit future turnover. Of this, 2% felt it would be advantageous and 32% said it would be favourable.

Just 15% of respondents thought a ‘no deal’ outcome would harm revenues, while 7% said it would be catastrophic. 38% felt that leaving without a deal would have no effect on turnover.

The quarterly Brexit Monitor survey, conducted by YouGov prior to the EU leaders meeting in Salzburg on 19/20 September 2018, found that the views of business leaders in the South were broadly in line with the national sentiment.

However, opinions did differ across the country. Over half (52%) of businesses in central England said they expected a turnover boost in a ‘no deal’ scenario, while 38% of respondents in Yorkshire and the North East said they expected their turnover to take a hit.

John Taylor, RSM’s regional managing partner for the South said: “Businesses in the region are split when it comes to the confidence they have in the Government’s ability to deliver a good deal. However, in the event of a ‘no deal’ outcome, they are fairly bullish about their revenue prospects.

“One of the reasons for this surprisingly upbeat sentiment could come down to their view that come what may, they remain sufficiently agile to react in a way that adapts to the new environment.

“The current uncertainty is making it very difficult to plan. All eyes will now be on the EU summit on 18 October, when businesses will be hoping for some progress – and most importantly clarity –  on the way ahead.”

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