More than 70% of firms made no Brexit preparations
Three-fifths of Scottish firms fear Brexit will have a negative impact on their business but there is little evidence of firms actually cancelling their recruitment or investment plans, a business snapshot suggests.
Three-fifths of Scottish firms fear Brexit will have a negative impact on their business but there is little evidence of firms actually cancelling their recruitment or investment plans, a business snapshot suggests.
Some 19% think Brexit will have a positive impact on their business, according to a survey of around 320 firms by the Fraser of Allender Institute.
One-third of firms said the impact would be “very negative” but only a quarter had actually changed their recruitment or investment plans, and most of those had postponed rather than cancelled plans.
A very small proportion, estimated to be around four firms, said they had cancelled their recruitment and investment plans altogether.
The report stated: “Around 40% believe that Brexit could lead to a decrease in their investment/expansion plans and 34% said that they could be likely to cut back on recruitment plans.
“More than 70% of firms had done no preparation for the UK exiting the EU.
“For around two-thirds (67%) of firms the resolution of uncertainty is a key issue in the UK's negotiation of its exit from the European Union. Forty nine per cent of firms cited 'Access to the Single Market' as a key issue.
“The survey finds little evidence however, of firms actually cancelling their investment or recruitment plans outright.
“Within the minority of firms (25%) indicating that they had already made a decision to change their investment and recruitment plans, the vast majority (95%) said that decisions had been postponed rather than cancelled entirely.”
Professor Graeme Roy, director of the Fraser of Allander Institute said: “The survey offers some evidence that investment and recruitment plans may be being put on hold.
“Resolving the current political and economic uncertainty must now be the key priority.
“It is imperative that policymakers do all that they can to help reduce this source of instability to allow businesses to invest and press ahead with their recruitment plans.
“The longer the period of uncertainty continues, the more damaging the impact will be on the economy.”