UK’S ‘readiness for change’ rating boosts Brexit hopes

BRITAIN has been ranked 10th in an index of the nations most ready for political and economic change, easing concerns it will struggle to deal with financial uncertainty caused by Brexit.

The Global Change Readiness Index, produced by KPMG, examines 30 indicators across 136 countries, gauging their ability to deal with upheaval. Factors include the flexibility of labour and financial markets, adaptability of government fiscal policy and the versatility of a country’s workforce.

The UK ranked highly in enterprise potential, coming seventh, and in societal robustness, where it placed eighth. Government capability was also strong, rating 13th. “Our country’s spirit of entrepreneurialism, mastery of technology and renowned business environment all point to a long-term, collective ability to rebuild our economy after Brexit,” said Karen Briggs, head of Brexit at KPMG.

The UK was one of only two major nations rated as being capable of responding to “shock” financial instability and political uncertainty in the top 10. The other leading economic power was Germany, which was placed ninth.

The findings come as a lift after claims that the UK will struggle to adapt to the uncertainty surrounding Brexit negotiations.

Smaller European countries including Switzerland (1st), Sweden (2nd), Denmark (5th) and the Netherlands (7th) were seen as best prepared for change. However, the UK rated higher than heavyweights such the US (12th), Hong Kong (13th) and France (20th).

The UK also ranked highly in subindicators including economic openness (5th), business environment (6th) and financial sector (6th). Scoring high in these categories is suggestive that the UK is more prepared for the financial volatility of Brexit than anticipated.

10 Britain’s position in the KPMG index of 136 countries, suggesting it is well placed to deal with financial upheaval