Brexit already hurting firms on both sides of border
BUSINESSES on both sides of the border have already been affected by Brexit, a report has found.
Two-thirds (66%) of small and medium enterprises in the North, and 50% in the south, that had planned to expand or invest in their business, have either cancelled or postponed investment due to Brexit.
These are among the findings of the latest AIB Brexit Sentiment Index for the third quarter of this year – July to September – which comes just weeks before the UK is due to leave the EU on October 31.
It found that 47% of the North’s small business firms have already been affected by Brexit and 32% expect a hard border, while 45% of those south of the border are affected and 59% expect a hard border.
Brian Gillan, head of business and corporate banking at First Trust Bank, attributed the results to political uncertainty.
‘With the continued political stalemate and uncertainty that abounds around Brexit it is perhaps not surprising that the Brexit Sentiment Index has reached an alltime low here in Northern Ireland at -41,’ he said. ‘Sentiment is down across all sectors but worryingly it is at an all-time low in the manufacturing and tourism sectors, both very important for the NI economy.
‘While we understand the reluctance of businesses to plan, given the levels of uncertainty we believe there is still value in considering the potential impacts of Brexit on your business – especially in a No-Deal scenario,’ he said.
‘Our advice to Northern Ireland businesses is to continue to work with their advisers and trade and industry groups to make sure they are as best prepared for all eventualities.’ Oliver Mangan, chief economist at AIB, added: ‘One of the most notable features of the surveys this year is the number of firms that say Brexit is having a negative impact on their business now.
‘During Q3 this stood at 45% of SMEs in the Republic of Ireland and 47% in Northern Ireland, much higher than in the surveys carried out in 2017 and 2018.
‘Consistent with this, the number of SMEs reporting that Brexit is having a negative impact on sales jumped to 28% in the latest two surveys in both ROI and NI.’