£1.7bn Brexit boost for SMEs

A new survey has revealed that British businesses are planning a £1.7 billion investment boost over the next two years, as Brexit uncertainty comes to an end.

The findings show that hiring new staff members (27 per cent) and moving to bigger premises (23 per cent) are top of the agenda for small and medium sized businesses (SMEs) as apprehension over UK’s departure from the European Union (EU) eases.

The survey results were published after the EU withdrawal bill was voted through the Commons earlier this month, with just The House of Lords left to navigate before the UK leaves the EU later this week on 31 January.

54 per cent of SMEs questioned had initially been pessimistic about the future, saying that Brexit uncertainty had been holding back their businesses. That figure has now dropped to just 18 per cent since the decisive general election result.

Those SMEs now planning to invest in their businesses say they expect to spend an average of nearly £370,000 each as they now feel they can plan for the future. Businesses in London are preparing to invest an average £420,000, according to the survey results.

The renewed optimism amongst SMEs is welcome news for Britain. It is however essential that UK SME business owners maintain effective management of their company’s working capital and put processes in place to survive and thrive in this volatile economic environment.

Contact our specialist advisers at Beavis Morgan for guidance and strategic advice to help in formulating plans for your business in order to strengthen its prospects of success, achieve growth and maximise wealth. Our partner business, BM Structured Finance, is also available to help with sourcing and restructuring debt finance for SME businesses.

For further information, contact Steve Govey or your usual Beavis Morgan Partner.