ICAEW suggests confidence amongst businesses has ‘slumped’

The Institute of Chartered Accountants in England and Wales (ICAEW) has suggested that confidence amongst businesses has ‘slumped’ as a result of ongoing Brexit uncertainty.

Image result for ICAEW suggests confidence amongst businesses has 'slumped'

The ICAEW’s Business Confidence Monitor recently revealed that confidence deteriorated from -12.3 in the fourth quarter of 2018 to -16.4 during this quarter. According to the Institute, every sector currently stands in ‘negative territory’, excluding the IT and communications industry.

Additionally, the ICAEW stated that it expects GDP growth of just 0.1% this quarter.

‘Companies at the moment are unclear about the future,’ said Michael Izza, Chief Executive of the ICAEW.

‘Directors have the exceptionally difficult task of explaining within their annual reports the impact Brexit might have on their business models and operations. Companies are making decisions now about jobs, supply chains, headquarters and asset locations – incurring significant, and possibly unnecessary, cost and upheaval.

‘We fear the destructive effects of a no deal outcome on the economy, so urge our politicians to work together to break the Brexit deadlock and help restore business confidence.’

Advertisements
UK businesses must prepare for ‘no deal’ Brexit, warns ICAEW

UK businesses must prepare for ‘no deal’ Brexit, warns ICAEW

The Institute of Chartered Accountants in England and Wales (ICAEW) has warned that businesses in the UK must prepare for a ‘no deal’ Brexit.

Research carried out by the Institute has revealed that a fifth of UK firms ‘haven’t considered the impact of Brexit’ on their business.

Many business owners believe that the UK’s exit from the EU will have ‘minimal to no impact’ on their firm, according to the ICAEW.

Image result for no deal brexit

It has urged businesses to put contingency plans in place in order to prepare for a ‘no deal’ Brexit, and to consider what this scenario could mean for their firm.

‘With less than a year until Britain leaves the EU, the prospect of an agreement in time is looking increasingly unlikely,’ said Michael Izza, Chief Executive of the ICAEW.

‘Even with the transition period until the end of 2020, too much still needs to be determined on how UK businesses and professional services will work both with and in Europe.’

Meanwhile, the research also suggested that 77% of businesses do not consider EU regulations to be a burden to growth, with a further 80% of firms committing to complying with EU rules once the UK has left the bloc.