Impact of Brexit on the UK Businesses till now

Today we are bringing you a list of effects that Brexit had or is having on businesses in the #UK. Once you end up reading this article you’ll realise that investment has dried up and businesses had moved assets to the European Union (EU27). Finally, you’ll notice how Brexit has already cost us £billions.

• Barden Corporation is closing down its Plymouth factory after 51 years, putting 400 jobs at risk, as its parent company Schaeffler shifts production to various sites outside the UK due to Brexit.
• The Government has spent £4.2 billion pounds of taxpayer money on Brexit preparations (£2.2 billion in previous Budgets, plus an additional £2 billion in the most recent Budget.
• HSBC is transferring legal ownership of its Polish and Irish subsidiaries from the UK to its French unit. Another 7 group companies are likely to follow suit.
• Investment in UK renewable energy market fell 46% year-on-year because of Brexit concerns.
• Broadcasters have begun to move licenses to EU27 countries, since channels licensed in the UK will no longer have the right to broadcast cross-EU after Brexit. Viacom and Viceland have secured licenses in the Netherlands.
• Barclays is moving €250 billion of business to Dublin ahead of Brexit, making it Ireland's largest bank.
• Marshall Wace, one of the biggest hedge funds in the UK, has obtained a license to run management companies in Ireland & plans to grow its Dublin presence as a protective measure against Brexit.
• UK companies with a .eu domain name will no longer be eligible to renew them after Brexit, nor will they be entitled to register new .eu domains. This affects an estimated 300,000 domain registrations.
• The UK Government spent £700,000 on the tables and chairs for an office in Leeds being set up to deal with Brexit. The office will be fully kitted out by the beginning of December, and 1,000 staff dealing with Brexit issues will be based there.
• British hauliers already have to turn down contracts worth hundreds of thousands of pounds because of uncertainties surrounding a no-deal Brexit.
• London-based Shadow Robot Company is outsourcing the bulk of production to Madrid after opening a new office there in response to Brexit.
• Bewleys, the Irish coffee group, incurred €11.9 million in costs preparing for a hard Brexit, including increasing its warehouse facilities, and expanding its roasting capacity in the UK.
• London Stock Exchange is moving its European government bond trading platform (MTS Cash) from London to Italy, effective 1 March 2019. 20% of its 13.4 billion euros worth of daily trade will shift to Milan.

These are just a few examples where we can see what Brexit has done or doing to the businesses in the UK. As promised earlier, we will continue bringing you facts, news, and everything you need to know around the UK exiting the EU.

Also See: Outsourced Bookkeeping and Accounting

About the author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.