Mixedviewsonthe NE impact of Brexit

The Brexit vote could be a golden opportunity for North-East manufacturers, says one of the region’s top law firms.

But uncertainty surrounding the long-term consequences of the vote is reported to have had a negative impact on the leisure sector.

Accountants and business advisers Clive Owen LLP is urging regional companies to take advantage of the low pound and favourable market conditions to explore new overseas sales prospects or bolster existing exports.

Kevin Shotton, partner and manufacturing specialist, said there had never been a better time for foreign trade, with UK goods now comparatively cheaper to overseas customers: “Brexit has been the number one discussion point when meeting with our clients in recent months.

“Although some are concerned by the potential impact on the wider economy, others are keen to act on the opportunity. Many of our clients have been exploring potential new markets since the referendum was announced in February, setting sterling on a downward spiral, and are now well placed to exploit the opportunity.”

But business rescue and recovery specialist Begbies Traynor says the leisure and hospitality sectors in the North East have been dealt a blow by uncertainty, which caused levels of ‘significant’ business distress to escalate ahead of the vote.

“It’s worrying that some sectors in the North East are already feeling the impact of the economic uncertainty in the run-up to Brexit,” said director Gillian Sayburn.

“While this data was largely recorded in the period before the referendum, the most recent consumer surveys – now Brexit looks a certainty – are spelling further gloom with plummeting consumer confidence, particularly in the north of England.”