Bosses back Brexit – three months too late

BOSSES of Britain’s biggest businesses say they are feeling confident, three months on from the Eu referendum.

The Brexit backing came despite the fact that nearly three quarters of them voted to remain. A survey of 100 chief executives, the first of its kind by advisory group KPMG, found most were optimistic about the growth of the UK and global economy, as well as their own firm.

But, while half think Brexit won’t change business in the Uk, the majority of bosses are considering moving their headquarters outside the country.

The survey of heads of companies with annual sales between £100m and £1bn found that many were contemplating contingency plans.

It comes as research from the Confederation of British Industry and Price Waterhouse Coopers reveals that financial firms are feeling unsettled by the challenge of lower interest rates and uncertainty as Brexit is negotiated.

The duo’s quarterly survey of 115 firms found that optimism among the UK’s financial sector has fallen for the third quarter in a row. It’s the longest period that sentiment has declined since the depths of the financial crisis in 2009.

While many of these firms saw the amount of business they did grow in the three months to September, just one in 10 said Brexit would have a positive impact on their firm. Rain newton-Smith, chief economist at the CBI, said: ‘It’s good to see that demand in the financial services has held up but the challenges facing the sector have not gone away – they’ve actually grown.

‘Add the uncertainty caused by Brexit to low interest rates, technological change and strong competition, and it’s plain to see why optimism is falling and pressure on margins remains intense.’

one of the major fears after the Eu referendum was that hiring would freeze at many firms. But almost a quarter of financial services companies said they had increased employment over the past three months, and 20pc expect employee numbers to rise in the next quarter.

Recruitment firms have widely reported strong demand across the board, too.

Research from the Association of Professional Staffing Companies found that the overall number of vacancies rose 0.3pc in August, compared with the year before. It said permanent vacancies at finance firms had increased 5pc, while there were some 16pc more temporary and contract positions available.

Ann Swain, chief executive at APSCo, said: ‘An increasing number of economic indicators suggest that the UK economy is largely unfazed by Brexit. unemployment is low, the housing market holding steady at the growth forecast has been revised up.’