Appetite for Brexit success
It’s becoming something of a national habit. This June’s snap election will be the fourth time in three years that the people of Scotland have gone to the ballot box in a major vote.
And, given the possibility of a second independence referendum, the country may find itself in the polling booths once again before too long. If Brexit spells uncertainty for businesses across the UK, companies north of the border face a whole extra layer of volatility. Yet,farfrompulling in their horns and waiting to see what outcomes the politicians deliver, they appear to be doing the very opposite.
We spend a considerable amount of time listening to business from a range of industries across Scotland about their concerns and aspirations, and, from what we’ve heard, they are harnessing new opportunities as they arise and engaging with the challenges to create their own stability.
Their varied experiences underline the fact that Brexit will inevitably affect different sectors in different ways, but, not surprisingly, all speak as one on the vital need to safeguard their future supply of skills and talent – both EU and home-grown. That’s key, given the challenges Scotland faces from both a declining population and a shortage of valuable expertise in fields such as engineering. What also strikes me is how widely Brexit is seen as another component of ‘business as usual’ in running a globally-networked organisation, rather than a separate challenge. In effect, it already features on the board agenda, from dealing with currency fluctuations to questions about business relocation or reconstituting the supply chain. One more disrupter, in other words, to join the others.
There’s no ‘tartan bullet’ for Brexit – or Indyref2, if it comes to that. Businesses understand they must be agile in contingency planning, based on choices informed by real-time risk analysis and a deep knowledge of critical paths and key investment decisions.
Any such plans also need to factor in the potential impacts of what could end up being a double farewell, from both the EU and the rest of the UK. That’s a vital consideration for many companies, given that Scotland’s exports to the rest of the UK are worth four times more than its exports to the EU. We’re talking to clients using customs tools to understand the potential impact of customs and VAT compliance changes, and how they might impact on the supply chain, corporate tax and business structures.
Businesses in Scotland want to make a success of Brexit. It can act as a catalyst to deliver a united vision for the Scottish economy, but that outcome requires close, constructive, cooperation between business, government and other partners such as Scotland’s world-class universities. There is undoubtedly a strong appetite among businesses to play an active part in this dialogue. Catherine Burnet, a senior partner at KPMG Scotland