Written by: Keith Tully
Date: Friday 23rd June, 2017
A considerable number of businesses throughout the UK are in denial about the potential consequences of Brexit.
That’s according to a senior figure from the business consultancy giant KPMG, who is convinced that there are a “band of firms” who are yet to take the necessary steps to protect their businesses from the fallout of the UK’s imminent departure of the European Union.
Negotiations between representatives of the UK and the EU officially got underway on June 19th but a lack of clarity around likely outcomes and consequences has left businesses facing a high degree of operational uncertainty.
However, this uncertainty could well become the “new normal” for British companies and directors need to take action now to protect their interests in the coming months and years, Karen Briggs, KPMG’s head of Brexit, has said.
“There is little reason to believe that the current levels of uncertainty and volatility around Brexit are going to change,” says Ms Briggs.
“If this is the new normal, businesses need to take a more proactive approach to shaping their own destiny. There is definitely a band of firms that are either in denial or yet to fully engage at board level.”
Ms Briggs has suggested that companies which fail to take action in response to Brexit-related issues could be putting their prospects in significant jeopardy.
She insists that businesses now need to get on with planning for the potential consequences of the Brexit process and to do so as a matter of urgency.
In recent days, chancellor of the exchequer Philip Hammond spoke to make clear his view that the UK government should be working to secure a Brexit deal that protects jobs and prioritises the economy.
However, the Bank of England’s governor Mark Carney also said recently that the view of his institution is that Brexit will, in all likelihood, make Britain worse off economically than it would otherwise have been.
“Depending on whether and when any transition arrangement can be agreed, firms on either side of the channel may soon need to activate contingency plans,” Mr Carney said during a speech in London.
“Before long, we will all begin to find out the extent to which Brexit is a gentle stroll along a smooth path to a land of cake and consumption,” he added.
18th January 2018 There was a sharp rise in the number of British companies facing serious financial problems during the latter months of last year as compared with the same period in 2016.
18th January 2018 A majority of British businesses would prefer to see the UK’s regulatory infrastructure align with that of the EU after the Brexit process has been undertaken.
11th January 2018 An extensive audit of Apple Europe’s UK operations by HMRC has resulted in the consumer technology giant paying an extra £137 million to the British tax authorities.
10th January 2018 The total number of retail businesses which entered into administration over the course of 2017 was 28 per cent higher than during the previous 12 months.
8th January 2018 Tens of thousands of companies across the UK could soon find themselves having to pay VAT amounts upfront to HMRC on a routine basis.
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